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Navigating Third-Party Risk Management for Small Businesses: Challenges and Opportunities

Third-party partnerships are essential for small businesses, offering efficiency and expertise, but they also introduce significant risks. This article explores the critical role of third-party risk management in safeguarding operations, reputation, and customer trust, emphasizing the importance of cybersecurity, compliance, and ethical AI use. With the right strategies, small businesses can mitigate these risks and thrive in a global market.

Oct 25, 2024

Roxane Romulus, former Director, Third Party Risk Management, Voya Financial

Navigating Third-Party Risk Management for Small Businesses: Challenges and Opportunities

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

Small businesses must invest in third-party risk management to avoid compliance breaches and reputational damage when outsourcing services.
Cybersecurity threats pose a significant risk to small businesses, especially when third-party providers have access to sensitive customer data.
The rise of AI introduces new risks for small businesses, including data privacy concerns and algorithm bias that must be managed responsibly.
Offshore providers offer many advantages but also introduce challenges like communication barriers, legal compliance issues, and geopolitical risks.