Third-Party Risk Assessment
Why Do You Need Third-Party Risk Assessments?
Third-party risk is escalating. Since the great recession, an outsourcing trend started to emerge to reduce internal costs. Today, the average company outsources to about 500 third parties. And while outsourcing is a great way to add efficiency to your business model, it also adds risk.
Regulators have taken notice of this growing trend and have increased scrutiny towards how companies manage third-party risk. With more fines and lawsuits to be had, reputational risk has also accelerated the need for third-party risk assessments.
Many scandals in today’s news are the product of third-party risk: problems in the supply chain, poor quality ingredients, software glitches, etc. But in fact, every third-party risk management scandal could have been prevented with third-party risk assessments.
How Can Third-Party Risk Assessments Protect Your Business?
While you can never outsource risk, you can manage it. Traditionally, third-party risk has been managed in a siloed fashion, with the company focusing in on specific risks within the supply chain. This approach, however, has become obsolete.
Companies are journeying towards an integrated approach to third-party management, where outsourced risk is looked at holistically to answer the questions such as how many touch points a vendor has in the company, or what information they have access to.
The first step companies take towards an integrated approach is usually the largest stumbling block. This step is gaining visibility into the company. Once an organization has gained some insight into the third parties associated with the company, they can focus their efforts on vendors that pose the highest risk.
Identifying the level of risk associated with a third party can only be done with supplier risk assessments or vendor risk assessment questionnaires that are pushed out to each third party.
LogicManager’s Third-Party Risk Assessment Questionnaire
Dive into a fully integrated third-party risk management solution with LogicManager’s pre-built supplier, vendor, and third-party risk assessments. Gain fast and accurate insight into which of your third parties deserve the most resources and attentions to assure a scandal of theirs won’t become one of yours.
Centralized Platform: LogicManager’s vendor risk assessment questionnaires enable external providers to log into a more limited version of your own LogicManager portal, so their information is imported directly into your vendor repository.
Pre-Built Third-Party Risk Assessments: LogicManager customers are provided pre-built supplier risk assessments that are fully customizable to fit their business. Assess risk based on predefined levels of impact, likelihood, and assurance to get an accurate third-party risk score.
Increased Engagement: Collect key information, documents, and sign-offs from across departments. Involve subject matter experts in the vendor risk assessment process to determine remediation steps once risks are identified.
Intelligent Reporting: LogicManager’s reporting engine automatically aggregates information from your third-party risk assessments and provides digestible reports and dashboards. Your personal advisory team will also help you create custom reports.
Get this solution.
If you’re already a LogicManager customer, you can contact your business analysts to activate this plugin! If you’re new to LogicManager, you can request a personalized demo to see our vendor risk assessment questionnaires in action. Not ready for a demo? Download our free eBook on third-party risk management!
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