Features to Evaluate in Third Party Risk Management Software

Key Features to Evaluate in a Third-Party Risk Management Software

By: Beaconer, Feb 20, 2024

Key Features to Evaluate in a Third-Party Risk Management Software

Companies today are increasingly shifting their focus to the rapid adoption of the hybrid ecosystem. It is mainly for cloud computing, global supply chain, and remote employment. Organizations use the services of third parties for maximizing productivity, delivering goods and services, and better efficiency. However, these businesses need to pay more attention to the correlated evolution of vendor risks and malicious threats.

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The use of third-party vendor services leads to the growing need for the management of the risks emerging with these associations. According to Statista, during the initial quarter of 2023, 6.41 million of data was reportedly leaked across the global data breaches.

It impacted millions of people. Data breaches incline towards the security incidents exposing the sensitive and confidential information to the parties without any authorization. In our blog today, we will indulge more in the reasons for using third-party risk management software. Focus on the key features and how the solutions prove to be effective at vendor risk assessment.

Understanding Third-Party Risk Management Software

It is reported that in early 2023, Security Scorecard, in association with Cyentia Institute, conducted research revealing that 98% of the companies have built partnerships with a third-party vendor. However, it was breached in the past couple of years. 

Therefore, at Beaconer, we address this growing risk among companies. We offer robust third-party risk management software that offers a real-time and integrated look at your suppliers, vendors, and contractors. It helps to safeguard your business from existing exposure to third or fourth-party risks. Our product would automate the end-to-end processes to gather information, real-time monitoring, onboarding, control, and compliance assessments and mitigate the possible risks. Our federated approach can assist companies in managing third-party risks by establishing confidence and trust in third-party relationships and facilitating growth.

Features to Look for in a TPRM Software

Opting for the right third-party risk management tool for your business needs a core understanding of the main functionalities that make your program effective and fast. The following are the major highlights of the main features incorporated into our TPRM software:

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Structured Third-Party Portal

The feature for the structured third-party portal helps you view the profile details of the vendors. It includes the products or the services along with the bank and transaction details. The additional third-party risk management feature renders the ongoing assessments, issues, status for due diligence, risk, rating, and more. You can use the intuitive portal to search and locate third parties on the basis of several criteria. It enables the identification of third-party access to the systems for submitting, updating, or uploading the main details.

Ease of Intake and Request Process

The third-party intakes get simplified throughout the departments with the house of a user-friendly portal. The risk assessments are completely automated for every third or fourth party. It would eventually lead to the boost of engagement and defining the frequency of the periodic evaluations. You can allow the mitigation of risks prior to the onboarding process. Additionally, it integrates well with the alerts from trustworthy external sources for verifying and screening the third-party details.

Assessment Of Risks

Our platform can assist in streamlining the third and fourth-party risk management process for faster solutions and compliance. It even combines continuous monitoring and automated assessments. You can now understand the potential hazards associated with third and fourth-party partnerships and address the matter with immediate effect. Companies should assess the risks that come with these external suppliers and analyze their effective influence on the operations of the company while determining the level of risk exposure.

Realtime Updated Information & Customized Assessment

Our software solution offers a real-time updated hub of information. It offers the highly relevant and latest data to help you stay informed. In this way, you can make the best decisions seamlessly. Our customized assessments even offer tailor-made assessments distinctively designed to align with your unique needs and scopes. The solution customizes our approach, ensuring better relevance and accuracy.

Ongoing Vendor Posture Monitoring

You can gain a better benefit from the continuous monitoring of the vendor posture to ensure you are aware of their real-time performance and security. Businesses should constantly monitor the third-party service providers to identify the operations of the company or the shift to the risk profile. Regular reviews of the performances, financial analysis, security certifications, and audit reports are the key parts of this feature.

Continuous Assessment of Inherent Risk

As of Feb 2023, reportedly, the average cost of the data breach last year in the US was reported at $9.44 million. Around 60% of the companies that were subjected to the data breach went straight into bankruptcy in just six months. Our software can automatically validate the third-party data while identifying the “red flags” on the basis of the content that gets sourced globally on the associated risks. You can subscribe to these alerts on the basis of the cruciality of the third parties. While these alerts are reviewed, you can assign a risk rating to these third parties and trigger the evaluation of risks. Create the issues automatically on the basis of the breach for the pre-defined thresholds.

Segmentation of Third and Fourth Parties

The pre-defined questionnaires can allow consistent third- and fourth-party risk and compliance assessments. You can conduct ad-hoc assessments on the basis of the risk intelligence out of the external sources, performance failures, incidents, or key business insights. The responses would determine and automatically calculate the risk scores. The aggregated risk scores can help determine the entire third-party risk exposure.

AI-Powered Smart Issue Management

Our AI powered third party risks assessment framework can help identify the issues on the basis of the classification of the issue. You can automate the creation, management, and monitoring of the actions for the findings and issues alike. The expiration or the breach of the third-party contract, along with the incidents of dissatisfaction or non-compliance, can help simplify the off-boarding process.

Intuitive Dashboards and Reports

The management teams can land on the best decisions on the basis of better knowledge of the third-party risks, performance, and compliance. It is achievable with the help of our potential analytics, reports, and business intelligence abilities. 

You can compare the scores for the third-party assessment for every product or service type while tracking the manner in which the third parties enhance with time. Allow the third parties to monitor their progress with the help of the graphical dashboards and reports.

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Conclusion

Now that we understand the importance of vendor risk assessment, our platform, Beaconer, strives to render managed third-party risk solutions. It offers the most comprehensive and automated evaluation of the third parties to ensure the mitigation of cyber threats and enable good insight. Associate with us for the most customized third-party risk management software that helps to minimize compliance burdens and offers better assurance that your vendors are meeting the key standards for better privacy and security. If your business is in dire need of a potential third-party risk management solution, then request a demo today!

Author Bio

Nagaraj Kuppuswamy

Nagaraj Kuppuswamy is the Co-founder and CEO of Beaconer, an esteemed enterprise specializing in managed third-party risk using the cloud native AI based solution. With an extensive portfolio of accolades and industry certifications, Nagaraj stands out as a seasoned expert, boasting over 16 years of dedicated involvement in the field of Cybersecurity. Throughout the course of their career, he has predominantly focused on elevating the realm of third-party risk assessment.

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