Third-party risk management (TPRM) is the set of processes and controls organizations use to oversee the risks associated with vendors, suppliers, and other external partners across the lifecycle of the relationship.

Third-party risk is changing faster than most organizations’ ability to manage it. As businesses become more dependent on vendors, suppliers, platforms, data providers and outsourced services, the stakes are rising with supply chain disruption, cyber exposure, AI-related risk, concentration risk, fragmented oversight, and growing pressure from regulators, boards, and executive teams. TPRM has become an enterprise priority for leaders responsible for risk, compliance, legal, cyber, procurement, operations, and internal audit—not just a compliance task buried in vendor onboarding.

Today’s challenge is not simply identifying third parties. It is gaining a consistent, defensible and scalable way to govern them across the full lifecycle. Many organizations are grappling with too many vendor risk assessments, inconsistent processes, limited visibility into critical dependencies, and difficulty connecting third-party vendor risk management oversight to broader resilience and transformation agendas. KPMG helps clients address these challenges by treating TPRM as an enterprise control layer that strengthens business resilience, supports regulatory confidence and improves operational efficiency.

TPRM works best when it is built into how the business buys

Third-party risk should not just sit beside procurement. It should be embedded within it. KPMG helps clients integrate TPRM into sourcing, contracting, onboarding, supplier segmentation, performance management and concentration-risk analysis — so risk is addressed proactively and more effectively.

This is where TPRM becomes more than a compliance checkpoint. It becomes part of the procurement transformation: enabling better supplier decisions, reducing manual bottlenecks, improving cross-functional coordination, incorporating vendor risk management best practices and strengthening resilience before disruption occurs. For procurement, legal, operations and executive leaders, that creates measurable business value — not just better documentation.

When TPRM sits beside procurement

Late risk discovery
Manual onboarding delays
Disconnect between sourcing decisions and concentration risk

When TPRM is embedded

Earlier risk signals at sourcing
Faster contracting and onboarding
Better visibility into supplier dependency before disruption

Sonu Sikand

Partner

Toronto

KPMG Canada

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How we can help

KPMG Third-party risk management services

KPMG’s TPRM offering is built around six integrated service groups designed to work together—so clients receive transformative solutions, not a patchwork of disconnected activities.

We help clients design or reset their TPRM strategy and operating model, strengthen governance, define decision rights, improve regulatory readiness, and establish practical transformative roadmaps.

Potential client outcome: A clearer, more defensible program with stronger executive oversight and a scalable foundation for growth.

We deliver structured, risk-based due diligence and assessments across the third-party lifecycle, including risk profiling, document review, contract review, vendor risk assessment, control evaluation and issue management.

Potential client outcome: Faster, more consistent onboarding and better-informed risk decisions for contract owners, risk, compliance, legal and procurement stakeholders.

We enable ongoing oversight through third-party risk continuous monitoring, alerts, remediation tracking, evidence coordination and performance analytics.

Potential client outcome: Earlier risk detection, stronger resilience and more sustainable run-state operations for risk, operations and internal audit leaders.

We assess, implement and optimize TPRM platforms and workflows, integrating and automating risk processes within procurement, IT, Cyber, and GRC ecosystems.

Potential client outcome: More automation, better visibility, and reduced manual effort across the lifecycle.

We embed AI to accelerate assessments, improve consistency, surface insights and support oversight of AI-related third-party risk.

Potential client outcome: Improved speed-to-decision, greater scalability and better use of specialist resources across various subject matter expert teams.

We embed TPRM into sourcing, supplier management and supply chain decision-making to address dependency, concentration and resilience risk at the point of creation.

Potential client outcome: Stronger supplier decisions leveraging timely risk information, better business continuity and more resilient procurement operations.

Sector nuance matters in third-party risk management

TPRM needs vary significantly by industry. For example:

In banking and insurance, programs are shaped by mature regulatory expectations—such as OSFI’s third-party risk management guidance, Guideline B-10 and AMF’s TPRM Guideline—alongside complex outsourcing arrangements and increased board level scrutiny.
In the public sector and healthcare, challenges tend to focus on deep operational dependencies, extensive vendor ecosystems, and legacy processes that limit visibility and agility.
In consumer and energy sectors, the focus is often on supply‑chain resilience, geographic exposure, and concentration risk driven by global sourcing and critical supplier reliance.

KPMG brings together not only cross-functional capabilities across risk, cyber, procurement, resilience, forensics, regulatory and technology domains, but also teams with the right sector experience to tailor TPRM to each client’s operating environment. Clients benefit from professionals who understand the business context, regulatory pressures and third-party risk realities specific to their industry, not a one-size-fits-all methodology.

What sets KPMG apart

End-to-end integration across TPRM advisory, assessments, monitoring, digital transformation, AI and procurement risk—rather than isolated point solutions.
Cross-functional delivery spanning risk, cyber, procurement, forensics, resilience and technology—aligned to how clients truly manage third-party risk.
Sector-aware execution reflects the specific needs of your organization’s industry.
Technology-enabled transformation through platform and workflow capabilities across various technology systems and tools such as ServiceNow, Archer, OneTrust, ProcessUnity and Ivalua, supported by risk intelligence sources.
A practical path to scale through repeatable delivery, continuous monitoring and managed services models where appropriate.

Grow responsibly, navigate evolving regulations, and strengthen your organization’s resilience with KPMG’s TPRM solutions. Contact us to discuss your needs.