A smarter, integrated approach to third-party risk with ServiceNow

In today’s fast-moving business world, companies rely more than ever on third parties to drive innovation, accelerate digital transformation, and support growth. However, this increased dependence also brings greater risks, as vendors and partners become deeply involved in core operations. With evolving regulations and the need for agility, businesses must take a more proactive approach to managing third-party risks. To stay competitive and secure, organizations must regularly evaluate and improve how they manage third-party risks, ensuring their partners align with their standards for security, compliance, and reliability.

Managing third-party relationships is increasingly complex and comes with several challenges, including:

• Complex regulations: Regulatory frameworks are often complex and can vary significantly depending on the industry and geographic location.
• Overlapping requirements: Multiple regulations can impose similar or conflicting obligations, making it difficult for businesses to determine compliance priorities and align efforts effectively.
• Rapidly changing regulatory landscape: The regulatory environment is constantly evolving, with new regulations, amendments, and shifting enforcement priorities.
• Resource and time constraints: Compliance efforts require significant time, financial resources, and manpower, which can pose challenges for organizations.
• Centralized monitoring: Businesses need centralized systems to effectively track and monitor regulatory changes across different jurisdictions and industries.

However, the most significant challenge remains gaining clear and reliable visibility into third-party operations. Obtaining accurate, timely, and transparent data from third parties is the biggest obstacle in third-party risk management. Without this crucial insight, businesses face difficulties in assessing risks, ensuring compliance, and responding proactively to emerging threats, making visibility the cornerstone of effective third-party risk management activities. 

Currently, many organizations rely on spreadsheets, Excel, email, and other manual methods to manage third-party risks. ServiceNow addresses these challenges by centralizing third-party risk management in one location, automating workflows from the initial onboarding and due diligence through the entire lifecycle of the third-party relationship. This seamless automation reduces manual effort and ensures consistency in processes.

ServiceNow also enhances risk assessments by automating and standardizing the third-party evaluation process. Third parties are assessed consistently using predefined forms and criteria, ensuring a thorough understanding of potential risks. In addition, ServiceNow simplifies reporting by providing real-time insights into third-party performance, compliance, and risk exposure.

As part of the Integrated Risk Management (IRM), Third-Party Risk Management (TPRM) allows businesses to manage third-party risks alongside all other organizational risks, offering a unified and holistic view of the overall risk landscape.