Define Third Party Risk Management?

Third-party risk management (TPRM) refers to the process of identifying, assessing, and managing risks associated with the use of third-party vendors, suppliers, and service providers by an organization. It involves a set of practices, policies, and procedures that are designed to ensure that third-party relationships are properly managed, and that any associated risks are identified and mitigated.

The goal of TPRM is to ensure that the organization's data, systems, and assets are protected against security threats that may arise from third-party relationships. This involves assessing the security practices and controls of third-party vendors, and ensuring that they comply with the organization's security policies and standards.

TPRM typically involves a risk-based approach, where the level of due diligence and monitoring is commensurate with the level of risk posed by the third-party relationship. This can include the use of contracts, service level agreements (SLAs), and other legal agreements to define the responsibilities and expectations of each party.

Overall, effective TPRM is critical for organizations to maintain the security and integrity of their operations, as well as to meet regulatory requirements and protect their reputation.