What is Third Party Risk Management Software?
Third-party risk management (TPRM) focuses on identifying and reducing risks relating to the use of third parties, sometimes referred to as vendors, suppliers, partners, contractors, or service providers.
Recent events, such as the global pandemic and the Ukraine invasion, highlight the huge strategic impact of third-party failures and how quickly risk can strike. This has helped organizations understand the need to improve the resiliency of their supply chains and critical third parties.
Third Party Risk Management software supports an organization with end-to-end management of their third party due diligence and ongoing monitoring of the risk posed by any third party. This includes the collection of information from the third party via questionnaires and the usage of external data sources. CoreStream’s TPRM capability has been designed to bring the latest capabilities to any organization, whatever data sources a business wants to use.
It enables business owners, compliance and procurement teams to engage with the platform to commence a third party due diligence process with the third party interacting with the platform. Automated data sources are leveraged with the platform facilitating the end-to-end process. This enables the solution to automatically risk score third parties and provide recommendations to management regarding ongoing engagement with them.
What are the benefits of Third Party Risk Management Software?
TPRM Software helps ease the time consuming, administrative burden of performing due diligence over third parties to determine the risk they might present to an organization. CoreStream’s capability enables business relationship owners and/or procurement to request a third party be set-up and based on the service being required and to assess the inherent risk of the third party service combination.
A risk rating is generated for each third party, enabling a decision to be made on engaging the third party or not. Mitigating actions may be required on both the organization’s side and the third party and can be agreed and tracked as part of the engagement process.
Our digital solution not only drives cost efficiencies and timely due diligence but it enables the collection of multiple data sources to assess the risk of a third party.
What are the risks of not having Third Party Risk Management Software?
Without TPRM software the process of performing third party due diligence is inefficient, costly and, due to the time taken to perform the due diligence, risks are highly likely to be missed. This could result in an organization engaging with a third party that may create regulatory, reputational or financial damage to their business.
The solution configured on the CoreStream platform leverages decades of experience in TPRM along with its intuitive and flexible nature. There are a number of different pre-configured versions depending on your organization’s approach to TPRM or the platform can be configured to your exact requirements and chosen data sources.
Key features include:
- Risk segmentation based on your organization’s chosen approach;
- Based on the inherent risk of a third party and service workflow automatically facilitates the assessment;
- Third party questionnaires, with branch logic, based on your requirements with the ability to upload third party documents;
- Ability to consume data from various providers through API, including screening, adverse media and financial information;
- Interface with your ERP and CRM solutions;
- Ongoing sanctions and adverse media monitoring via API connectors;
- Ability for enhanced due diligence with your chosen provider having access to the platform; and
- Realtime dashboarding and reporting, including risk alerts against third parties.