Automating Third-Party Risk Management Processes for Efficient Vendor Risk Management

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Risk Management

The organizations these days use the services of third-party vendors, and most of them use vendors inviting in the vendor risks. It is during this point that numerous risk managers know that they have to manage vendor risk; however, the work at assessing and managing the risks has risen to the point that it is manually impossible. 


It is where you need the possible implementation of vendor or third-party risk management.


It is because of the rapid outcomes for vendor assessment in the fewer risk downtime and exposure. However, an improper assessment process would lead to the lack of use of corporate resources. The slow-paced vendor selection leads to downtime while business awaits their new vendors.


A prolonged assessment process often exposes you to unmitigated risks if you are handling a business with a supplier. Automation is the ideal way to overcome these issues. Reportedly, the cost per data breach, on average, is estimated at $4.45 million in 2023, marking an increase from $4.3 million in the past year.

The Importance of Third-Party Risk Management

It comes as no astonishment that more than 50% of the security incidents over the past couple of years have grown from third-party access to numerous privileges, with more companies sharing data with more third-party vendors. Sadly, although several security teams are agreeing that the visibility of the supply chain remains a top priority, the same notes that the other companies can look into their important vendors and the whole third-party ecosystem.


The lack of investments in managing third party risk involves a lack of time, resources, and money as the business has to work with its vendors. Therefore, how do we make things seamless in terms of overcoming the hurdles in the management of third-party risks? The answer lies in automation.

Automating Vendor Risk Management

The following are the tips to give you an overview of how you can enhance the scalability of the lifecycle involving third or fourth party risk management:


Vendor Assessment With Constant Management of Threat Exposure

The constant exposure to the threat assessments includes extensive evaluations, including the following:

  • Automation of the discovery of assets
  • Network and external infrastructure assessments
  • Assessments to web application security
  • Informed analysis of threat intelligence
  • Findings of the dark web
  • Highly accurate rating for security


It is the most extensive assessment of the third parties compared to sending over only the questionnaires. The process of a manual questionnaire consumes around eight to forty hours for every vendor offering, and the vendor is to respond immediately and precisely. However, it is the approach that hardly enables you to check out the risks or validate the potential of the much-needed controls within the questionnaire.


Using the automated threat exposure assessment ability and integrating it with the questionnaire can help reduce the time involved in reviewing the vendors.

Using An Exchange For Questionnaire 

Companies can effectively manage several questionnaires or the vendors responding to several questionnaires where you should consider the use of the questionnaire exchanges. It is the host of the repository for completing the standard or custom questionnaires that get shared with the other interested parties after approval.


Whenever you opt for a platform performing the automation as noted above, both parties will get verified and follow an automated approach to the recent list of questionnaires that get auto-validated through constant assessments. Additionally, it can save time for your team by requesting access to the existing questionnaire or by scaling the time in response to the new questionnaire that can be reused after a request.

Constant Combination To Compile Threat Exposure Findings With Questionnaire Exchange

Using only the security ratings does not work. Using the questionnaires by themselves for the assessment of third and fourth parties fails to work. The management of threat exposure incorporates accurate security ratings out of direct assessments, combined with the validated questionnaires where queries for the evaluations, and updates the ratings to security, offering you a robust solution for constant third-party risk management. The platforms using the active and passive assessments rely on more than just historical data, offering highly accurate visibility to attack the surface.


These are the details that get used for auto-validating the applicable controls within the questionnaire for better compliance framework and security requirements while flagging the discrepancies between the findings of technology assessment and client answers. It offers the companies real trust by verified approaches towards the reviews from third-party. As it is a thing that is done instantly, you can get notified whenever these third-parties become non-compliant with distinctive technical controls.


It is often an intricate process to reach the point where you are potentially managing your vendors. This is why automated vendor risk management programs form the real future of Third-Party Risk Management.


The automated third-party risk management processes enable you to seamlessly track vendor risk while keeping vendor risk management relevant to the transitioning times. Automation can help ensure that vendors are onboarded in subtle, faster, and cleaner operations. It indicates the ease of scanning and tracking with clear information vendors for risk identification and thorough reports.


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