Third Party Risk Management Program

With a holistic view, you can anticipate how vendor risks might ripple across your operations and act before they disrupt business as usual—setting the stage for the governance structures that follow.

The strength of your third-party oversight depends on the strength of your governance. With LogicManager’s Risk Maturity Model (RMM), you define oversight roles, set review structures, and connect vendor policies directly to your organization’s risk appetite.

By anchoring TPRM in ERM, you see vendors for what they truly are—strategic partners or potential vulnerabilities—and can act accordingly. This approach fosters ownership at every stage, making it easier to stay aligned and proactive.

Effective third-party risk management starts with clear rules, responsibilities, and a centralized source of truth. This solution enables you to establish a third-party risk policy that defines how vendors will be reviewed and managed over time. Tiering criteria set the standards for measuring criticality and risk levels, and assigning ownership makes accountability clear for every vendor relationship.

From there, you build a comprehensive third-party inventory that documents engagement types, risk domains, and criticality classifications in one accessible location. This unified record eliminates fragmented tracking and makes it easy to see exactly where each vendor stands.

With governance structures in place, you not only create order but also focus on the vendors that have the greatest impact—and the greatest potential risk—to your business.

Once governance is established, it’s time to assess each vendor based on actual risk exposure. This solution supports structured onboarding risk assessments across critical domains, including cybersecurity, financial health, regulatory compliance, and reputational impact. Each assessment measures the vendor against defined criteria to ensure consistent evaluation across your program.

Using the results, vendors are assigned a risk tier that dictates the depth and frequency of ongoing reviews. High-risk vendors might require detailed annual audits, while low-risk vendors may be reviewed less often, allowing you to focus resources where they matter most.

By making risk tiering a deliberate, criteria-driven process, you gain the foresight to act before small issues ripple into larger business disruptions—ensuring assessment is not a formality, but a foundation for smarter decisions.

Mitigating third-party risk means ensuring your agreements align with your expectations. This solution equips you to review and enforce contract clauses that address your organization’s priorities, including service-level agreements (SLAs), indemnification provisions, and audit rights.

Contracts are reviewed against both internal policy requirements and the vendor’s assigned risk tier, ensuring that terms are proportionate to the potential impact of the relationship. Templates and workflows standardize the process, making it simple to apply protections consistently and verify compliance before any contract is signed.

When contract language is aligned with real-world risk, you create guardrails that prevent issues from escalating and keep risk from rippling beyond the scope of the vendor relationship—protecting both performance and reputation.

Once contracts are in place, ongoing monitoring ensures vendors deliver on their commitments. Our solution tracks performance against SLAs and other contractual obligations using structured reviews that surface underperformance, missed deadlines, or compliance gaps early.

Performance data is centralized and accessible, making it easy to identify patterns—whether it’s a trend of late deliveries, lapses in quality, or inconsistent success in meeting targets. This visibility enables you to address small issues before they become larger risks.

By continuously comparing actual results to agreed-upon expectations, you can hold vendors accountable, direct support where needed, and prevent ripples of underperformance from spreading across your operations.