Organisations have been engaging with third parties in order to achieve positive synergies, some of them being lower costs, better operational efficiency, special expertise, new technology, economies of scale etc. The ever-increasing business relationships with third parties are no longer restricted to outsourcing but have transformed into an extended arm of the organization itself, in turn exposing them to a greater risk universe. In the light of above, third party risk management has become one of the top strategic objectives to be attained for any organization as per the board agenda. This paper aims at addressing this issue and talks about various third-party risks, critical components for developing the right governance framework to manage such risks, and most importantly tapping the opportunities emanating from it.

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