Future-Forward Third Party Risk Management With Managed Services

Many organisations have become highly dependent upon external vendors, for managing cloud and data, delivering business functions like finance and human resources, and handling logistics and warehousing. These vendors may in turn outsource to fourth parties. Without appropriate procedures in place, this leaves organisations vulnerable to cyberattacks and supply chain disruption, questionable labor and environmental practices, and poor-quality products and services that impact internal and external customers.

A large private or public entity must manage the risks associated with an army of third, fourth and fifth (or "nth") parties that may run into the tens of thousands. The proliferation of fourth and fifth parties ("vendors of your vendors") — many of whom may have no direct contact with the organisation — takes risk management and operational resilience to a new level of complexity. The web of parties is greater than enterprises may realise, enlarging the attack