Your third-party ecosystem may expose you to risks that could impact the long-term financial viability of your organization. By quantifying the amount of financial risk in your third-party ecosystem, you can manage these threats more efficiently.
This white paper covers the forms that financial risk takes in third-party risk management (TPRM), the steps to tracking and quantifying this risk through your vendor ecosystem, and strategies for prioritizing mitigation efforts.
Financial risk is one of the TPRM domains most likely to directly harm your organization. Unless you ensure that you have the same level of visibility into your third parties as you would an internal business unit, there’s the possibility of a financial incident that can seriously hurt your organization. Reduced revenue, regulatory fines, supply chain disruptions, and failing vendor finances all put your financial health at risk, increasing the potential for missed goals and organizational failure. By building out a register of the financial risks facing your organization, calculating the likely cost of each event, and addressing the risks that are the most likely to cost your organization the most money, you can maintain a strong third-party ecosystem while protecting your business.
This white paper will cover:
• The kinds of financial risk in third-party relationships
• How to build financial risk into vendor questionnaires
• Steps to building a financial risk register
• Strategies for prioritizing and addressing financial risk