Getting Started with a Risk-based Approach to Third-party Management

Companies work with thousands of third parties on a daily basis. And whether that company is a small start-up or a large corporation, relationships with these third parties – vendors, clients, business partners, etc. – can significantly impact a business. To consider the most critical risks that these relationships might carry, organizations need to adopt a risk-based approach to managing third parties.

Jody Allred, Weaver risk advisory services partner, spoke with Smart Business further about the topic in the interview “How to get started on a risk-based approach to third-party management.” Jody discusses:

• Why the topic is becoming more important
• What can happen if third-party risks aren’t properly managed
• Whether a risk-based management approach is common practice
• Steps organizations can take to get started

Third-party risk management requires a team effort. And if an organization can fully commit to such an approach, it can benefit by gaining insight into risk influences that are strategic to business success.