Beyond compliance: How modern TPRM drives enterprise resilience

In an era of deep interdependence, the perimeter of enterprise risk has dissolved. The conventional model for managing third-party relationships—a static, compliance-focused exercise—is no longer sufficient.

According to the 2026 KPMG Global Third-Party Risk Management Survey, one third of organizations have suffered monetary loss or reputational damage and 28 percent have faced supply chain disruptions in the last three years due to third-party disruptions. It is clear that a simple defensive posture is a failing strategy. It is time to upgrade from a reactive model to an integrated, resilience-based approach.

While cybersecurity and regulatory adherence remain critical table stakes, leading organizations are looking beyond them to build true enterprise resilience. This means ensuring business continuity, safeguarding brand reputation, and enabling growth amid volatility.

How? This is done by weaving risk awareness into the corporate fabric to recast third-party risk management (TPRM) as a competitive differentiator, not just a cost of doing business.

The 2026 KPMG Global Third-Party Risk Management Survey reveals a clear and urgent gap between awareness and action. While leaders acknowledge the high stakes, their programs are often hampered by foundational weaknesses:

A persistent priorities paradox

The TPRM agenda is still dominated by defense. Leaders cite cyber risk (48 percent) and regulatory compliance (45 percent) as the top drivers of their TPRM strategy. While essential, this focus reveals a reactive mindset, leaving less room to manage the next wave of strategic risks before they materialize.

Silos create critical blind spots

While more than 70 percent of organizations report that their TPRM program is either “mostly” or “fully” integrated with Enterprise Risk Management (ERM), our experience shows this integration is often superficial. Integration must be more than feeding data into high-level dashboards; it requires deep linkage across systems and processes for a unified view of risk—a significant strategic and operational challenge that most have yet to solve.

Unreliable data stalls action

A TPRM program running on poor data is flying blind. Only a mere 17 percent of leaders report having the highest level of data quality. This is more than a reporting inconvenience; it actively undermines confidence. Our survey shows that leaders with high-quality data are significantly more likely to be “very confident” in their TPRM decisions than those with inadequate data.

AI’s power remains largely theoretical

While many organizations are experimenting with artificial intelligence (AI) in TPRM processes, only 22 percent find their tools “very effective.” Without a foundation of trusted data, even the most advanced AI tools cannot deliver meaningful insights, creating a patchwork of disconnected solutions instead of end-to-end orchestration.

These survey results starkly establish that incremental fixes are no longer enough. A truly modern approach to TPRM is essential to risk modernization across the enterprise. It requires a fundamental shift in strategy—transforming the TPRM function from a compliance burden into a source of strategic insight and moving from a culture of reaction to one of anticipation.

By aligning TPRM with enterprise goals and business strategy, organizations can respond to disruptions with speed and pursue opportunities with confidence. This is how TPRM becomes a catalyst for resilience, not just a backstop for compliance.

Your blueprint for a future-ready TPRM program

Transitioning to a modern TPRM function requires deliberate effort and a clear plan. It is less about a single technology fix and more about a holistic change in culture, process, and governance. For risk and compliance leaders ready to begin, we recommend focusing on these four key actions:

Build a unified risk perspective: True resilience is impossible when risk is managed in fragments. Integrate your TPRM and ERM functions to create a single, enterprise-wide view that informs strategic decisions. This means establishing cross-functional governance and shared controls, not just shared reports.

Elevate data to a strategic asset: Invest in data governance to create a “single source of truth.” Start small by focusing initial clean-up efforts on your most critical third parties to drive early wins. This is the non-negotiable foundation for credible reporting and effective automation.

Deploy automation with purpose: Move beyond isolated experiments. Embed intelligent workflows across the entire TPRM lifecycle—from onboarding to offboarding—to accelerate processes and uncover hidden risks. Pair technology with human expertise to ensure risk decisions are contextual and aligned with business goals.

See beyond your direct relationships: Your exposure does not end with direct vendors. Develop “nth-party” visibility to understand the risks lurking deeper in your supply chain. At the same time, leverage managed services to scale your capabilities efficiently, remembering to outsource outcomes, not ownership.

Service

Enhance stakeholder trust that makes the difference.

A dynamic approach to risk, regulation, cyber, and ESG

At KPMG, we believe risk management should be a catalyst for growth and resilience. Our approach is business-led and outcome-focused, designed to help transform how your organization manages risk and turn it into a competitive advantage. We help you move beyond a fragmented, compliance-driven model to an integrated strategy that builds trust and creates value.

Our global, multidisciplinary teams bring together specialists in risk, compliance, cybersecurity, and AI to help you design and implement a tailored TPRM program. The KPMG modern managed services offering unites automation with specialized knowledge on-demand to cover the full TPRM lifecycle—delivering measurable efficiency gains and the strategic insights needed to build lasting resilience.

Building a resilient, future-ready TPRM program is a journey that sharpens your competitive edge and protects your organization:

Benchmark your program: Download the full TPRM Survey Report to explore these themes in detail.
Hear from our specialists: Replay our exclusive webcast on TPRM complexities in a volatile world.
Go deeper: Read other articles in the KPMG Risk Modernization series to discover transformational strategies to accelerate your risk management and resilience efforts.
Explore our services: Learn how KPMG can help you modernize your risk and compliance approach.

Gain exclusive insights from the 2026 KPMG Global Third-Party Risk Management (TPRM) Survey. Learn how organizations worldwide are addressing regulatory compliance, cyber risk, and the growing complexity of third-party ecosystems—while leveraging AI and managed services to build resilience.

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