Mastering Third-Party Risk: Effective due diligence in a complex supplier network

Article

In today's complex supplier networks, mastering third-party risk management requires tailored due diligence and careful risk assessments. This article provides actionable insights into effective TPRM, highlighting strategies for managing direct and indirect suppliers, addressing challenges in balancing risk and due diligence, and the importance of collaboration and continuous monitoring.

Oct 01, 2024

Codee Woo, Third Party Risk Management Lead, Legal & General Group

Mastering Third-Party Risk: Effective due diligence in a complex supplier network

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Effective third-party risk management involves performing due diligence proportionate to the level of risk each supplier presents to your organization.
Monitoring the risk management practices of fourth and Nth parties is essential to ensure alignment with your organization's standards.
A combination of screening, desktop, and on-site assessments should be utilized to balance practicality with the severity of the supplier’s risk level.
Using external consultants and threat intelligence monitoring can help fill gaps in manpower and enhance continuous risk monitoring efforts.