From standalone solutions to integrated platforms: How technology is transforming third-party risk management

Reliance on third parties is very high these days. At the same time, the number of risks associated with these relationships is growing: cyberattacks, regulatory requirements, geopolitical uncertainties and increasing ESG requirements are shaping the landscape. This also means that many traditional TPRM approaches are struggling to keep pace with these developments. Digital platforms and AI-powered systems offer new opportunities to manage risks in a transparent, structured and cross-functional manner.

The Global Third-Party Risk Management Survey 2026 confirms this trend: 48 per cent of companies cite cyber risks and 45 per cent regulatory requirements as the strongest drivers of their TPRM strategy.

Technology as a catalyst for a modern TPRM

In practice, however, it is evident that the use of AI in a TPRM context is still approached with caution. Although 50 to 58 per cent of companies already use AI in individual TPRM process steps, only 22 per cent rate its effectiveness as ‘very effective’. This may be due to the fact that AI has so far been used predominantly in isolated individual functions – such as for analysing questionnaires or for automated reporting – whilst end-to-end integrated workflows are still rarely implemented. It is therefore clear that the potential of AI remains untapped in many organisations.

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External service providers, partners and suppliers play a key role in modern supply chains – yet regulatory requirements are becoming increasingly stringent. In this webcast, you will gain a clearly structured, practical overview of the key requirements and risk areas in third-party risk management.

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Digitalisation throughout the TPRM lifecycle

Technology is already capable of supporting every stage of the third-party lifecycle, thereby enhancing the efficiency, comparability and speed of processes. This includes, in particular:

Automated classification and structuring of third parties

Modern platforms automatically assign risk levels to third parties based on defined criteria. This provides early clarity on which checks are necessary and where resources should be allocated.
Standardised and AI-powered risk analysis

Digital tools enhance manual questionnaires with dynamic elements, analyse responses automatically and incorporate external data sources such as sanctions lists, negative media reports or ESG information. AI helps to identify anomalies and reduce the rate of false positives.
Technology-enabled contract management

Rule-based system checks ensure that risk, security or compliance requirements are automatically incorporated into contract clauses. This improves quality and reduces the likelihood of errors.
Continuous real-time monitoring

AI-powered monitoring immediately detects changes in the risk profile – such as those caused by cyber incidents, regulatory changes or other external events. Automated alert systems enable proactive intervention rather than reactive damage control.
AI as an integral part of modern TPRM systems

AI enables forecasts and scenario analyses to assess future risks, identifies patterns in large volumes of data, automatically evaluates documents, media and certificates, and supports dynamically adapted questionnaires and risk-based audit processes.

Durch die gezielte Integration technologischer Anwendungen wird das TPRM nicht nur effizienter, sondern auch qualitativ verlässlicher. TPRM unterstützt Managemententscheidungen mit datenbasierten Erkenntnissen.

From standalone digital solutions to integrated TPRM platforms

The growing complexity of external risks calls for a rethink. Modern TPRM systems can hardly be operated effectively without technological support.

Already, 51 per cent of the companies surveyed state that they are investing in TPRM technologies, though often without a holistic platform strategy. However, the modern risk landscape makes it necessary to strive for integrated architectures that bring together data, processes and analytics, thereby enabling efficiency, transparency and scalability.

Many companies are therefore asking themselves the general question of which tools make sense. Our global study shows that there is currently no established standard for TPRM tools. Many companies use several separate systems, for example with corresponding data silos, redundant processes and inconsistent data sets. This fragmentation is one of the biggest obstacles to efficient and technology-supported TPRM processes.

Modern TPRM solutions are therefore increasingly evolving into integrated platform ecosystems that combine risk analysis, due diligence, questionnaires, action tracking and monitoring on a shared technological basis. Technology-enabled screening tools, automated workflows and AI-powered analytics are becoming central components of effective third-party risk management.

_{Figure 1: Example of TPRM implementation using ServiceNow and a KPMG AI-powered solution}

A concrete example of this development is the combination of ServiceNow with an AI-powered KPMG solution. The AI-based forensic and due diligence tool performs real-time analyses of data from several thousand sources, automatically converts results into risk analyses, and centrally manages workflows and escalations. Information is captured in a structured manner via portals for end users and third parties, resulting in a consistent and up-to-date risk profile.

Technology makes TPRM more effective

In summary: digital tools and AI are transforming TPRM into a holistic, agile and strategic management tool, and are the answer to the modern, dynamic risk landscape that needs to be managed. They enable: