Third-Party Risk Management (TPRM) is the process of identifying, assessing and mitigating risks associated with external entities that are business partners - including, but not limited to: vendors, suppliers, partners and service providers. It ensures that third parties comply with regulatory requirements, uphold security standards and do not expose the organization to financial, operational, reputational or compliance risks.

TPRM involves due diligence, continuous monitoring and risk assessments to manage threats like data breaches, fraud, corruption and supply chain disruptions. As regulatory scrutiny increases, businesses across industries are integrating automated TPRM solutions to enhance oversight, improve decision-making and maintain compliance.