earth globe planet

Perspectives

Third-party risk management

Third-party decisions and managing risk

Organizations have long relied on third parties for specialty services, competitive advantage, operational efficiency, and cost savings. But as organizations expand third-party ecosystems to execute core activities that are critical to operations, business models, and value propositions, they’re also creating risks for the extended enterprise.

Growing risk to the extended enterprise

Organizations have long relied on third parties for specialty services, competitive advantage, operational efficiency, and cost savings. But as organizations expand third-party ecosystems to execute core activities that are critical to operations, business models, and value propositions, they’re also creating risks for the extended enterprise.

As one example, the sheer number of relationships can often explode as organizations rapidly adopt new operating models and outsource more core and noncore functions to third parties—cloud service providers are one prominent example.

And, organizations are rethinking the nature of work, workforces, and workplaces as talent gaps appear and automation, analytics, and artificial intelligence (AI) increasingly enhance traditionally human-performed jobs. Third parties can play a part in many of those changes.

building icon

Does your organization

  • Lack of visibility into and understanding of risks potentially posed by your relationships with many types of third parties?
  • Want greater visibility into third-party performance and risks?
  • Need to improve operational costs, process efficiencies, and organizational agility associated with your third-party relationships—all while gaining greater control over related risks?
  • Want to be confident that third parties are compliant with your organizations’ policies, as well as their own—based on government regulations and industry requirements?

If you answered "yes" to any of those questions, your organization may need a third-party risk management solution—and it may need to rethink third-party risk.

Back to top

Third-party risk management

Why rethink third-party risk?

So as third-party ecosystems continue to expand exponentially, important questions are being asked by boards of directors and other stakeholders regarding the risk to the extended enterprise, including:

  • Where are the highest concentrations of risk across the portfolio of third-party relationships?
  • How is risk being detected, monitored, and measured?
  • What is being done about third-party risk?

For large organizations that may have tens of thousands of third-party relationships, this can create a gap in extended enterprise risk management. The potential for, and implications of, third-party-related incidents and disruptions can be far-reaching if not properly identified, assessed, managed, and monitored. And unless organizations change the way they govern third-party risk across their interconnected ecosystem, their business may be disrupted.

question mark icon

Why choose Deloitte’s third-party risk management solution?

Whether your organization has a large, well-established third-party program, is in the early stages of development, or is anywhere in between, Deloitte’s Third-Party Risk Management solution can improve the health of your program.

Our solution streamlines the third-party risk management process through standardization, scalability, and efficiencies - from third-party risk identification to assessment and selection, to input through contract development as well as ongoing monitoring, including:

  • Third-party screening
  • Background checks
  • Third-party questionnaires
  • On-site inspections
  • Monitoring and reporting

Deloitte’s Third-Party Risk Management solution provides relevant insights along with risk assessment results to help you make a more informed decision about contracting with a third party so that you are armed with strategies for managing and mitigating potential risk.

From cybersecurity to anti-bribery, our solution is flexible and responsive to the various risk domains that are most important to your organization. We offer:

  • A broad-based view of risks and third parties through a central global repository with an executive dashboard and benchmarks against industry standards
  • Standardized processes, applied consistently across all markets and organizations, for third-party risk sensing, scoring, and monitoring
  • Extensive and reliable insights for risk-assessed decision-making, supported by continuous monitoring and near real-time data for integration with functions such as procurement, risk, compliance, IT, and others
  • An intelligent technology platform that automates processes and aggregates risk data about your third parties to provide risk intelligence
  • Access to subject-matter knowledge from Deloitte professionals with deep cyber and third-party risk domain experience
check-mark icon
Did you find this useful?