THIRD PARTY RISK MANAGEMENT GROUP 6

Third-party risk management refers to the process of identifying, assessing, and mitigating the potential risks and vulnerabilities that can arise from engaging with external parties, such as vendors, suppliers, contractors, or service providers. In today’s interconnected business landscape, organizations often rely on third parties to deliver critical goods, services, or infrastructure support. However, this reliance also exposes them to various risks that can have significant impacts on their operations, reputation, and security.

The objective of third-party risk management is to establish effective controls and safeguards to protect an organization’s interests when working with external entities.