Page 63 - Cyber Defense eMagazine RSAC Special Edition 2025

Businesses establish continuous monitoring programs by applying tools like security questionnaires and
performance metrics alongside penetration testing and regular audits. SLA compliance together with
incident response times and vendor KPI performance metrics serve as essential tools for oversight
maintenance.

Organizations need to utilize external experts to perform audits and configuration assessments while
detecting hidden vulnerabilities. By implementing structured review processes businesses synchronize
vendor performance with both operational needs and regulatory standards while preserving compliance
and organizational strength.

Aligning TPRM with Enterprise Risk Management (ERM)

Integrating TPRM with comprehensive Enterprise Risk Management (ERM) strategies maximizes its
effectiveness. The collaboration needs contributions from multiple departments such as procurement, IT
security, compliance, and legal teams. Executive leadership and the board must receive regular reports
to ensure strong risk governance. Vendor risk assessments aligned with organizational risk appetite and
strategic goals enhance risk management capabilities while fulfilling regulatory requirements.

Incident Response: Be Prepared for Breaches

A TPRM program with the highest quality standards still leaves some risk uneliminated. Organizations
should create powerful incident response strategies to handle incidents that involve third-party
entities. Organizations need established escalation processes and transparent communication protocols
with vendors to effectively manage security breaches and operational failures.

Through tabletop exercises organizations can evaluate their preparedness while discovering
weaknesses and strengthening coordination across departments. Proactive actions work to reduce the
effects of crises involving vendors.

Building a Culture of Vigilance

A successful TPRM program demands organizational cultural transformation beyond just implementing
tools and policies. Staff training is essential for employees to properly identify third-party risks while
adhering to escalation procedures and assisting risk management efforts. The IT, legal, and procurement
departments must completely comprehend their vendor oversight responsibilities. Every company level
upholds risk management responsibilities through a unified commitment to vigilance.

63