Managing vendor data, information security, and broader third-party risk can be a hefty task. Implementing an effective third-party monitoring (TPM) program reduces risk while enabling you to manage vendors confidently. But what is third-party monitoring? How does it work? Let's dive into some answers!
Third-Party Monitoring Services - Why is it Important?
Third-party monitoring services are essential because they can help you achieve your compliance goals. Third-party monitoring services are also an excellent way to measure whether or not your compliance program is working as it should and if any areas of improvement need to be made
Third-party monitoring can be implemented annually but is usually done more frequently. The third-party will monitor the company's relevant systems, processes, and procedures to stay up-to-date with regulatory requirements.
The third party will then provide feedback on how effective the systems were in meeting their intended purpose and highlight any weaknesses or areas for improvement within the organization's compliance program.
What are the Benefits of Third Party Monitoring Services?
Third-party monitoring services provide a variety of benefits. The most obvious benefit is that it can help ensure your site is secure. However, it can also help you with the following:
Inform Procurement Due Diligence
Third-party monitoring services are one of the best ways to identify risks before they become problems.
This helps you achieve compliance with regulations, reduce risk exposure and save money by removing bad suppliers from your supply chain.
Reduce Reputational Risks
Continuous monitoring offers you real-time information about your third-party vendors' risk status. In addition, intelligence on financial disclosures, regulatory penalties, ethics violations, environmental issues, and legal proceedings can help you avoid negative press in your supply chain.
Reduce Data Breach Risks
Third-party monitoring services are used to help companies mitigate data breach risks. They do this by assessing the third parties company's information. If a service provider is found to be unsafe or insecure, it can be removed from your network, or you can opt for a different provider altogether.
Prioritize Assessments
Third-party monitoring services can help you prioritize assessments. Of course, it's essential to monitor your internal controls to ensure that they are working effectively, but it can be challenging to know which areas need the most attention or where improvements have been made.
You can use third-party monitoring services to find out which areas are already performing well by comparing them against industry standards and similar businesses in your industry.
Validate Assessment Answers
Validation is a process of confirming the accuracy of information. For example, it's used to verify whether or not a requirement has been met during testing activities. This might include answering questions about whether specific tests were conducted correctly
Subul takes the pain out of third-party risk management (TPRM). Companies use our services to eliminate security and compliance exposures from working with vendors and suppliers throughout the third-party lifecycle. Our customers benefit from a flexible, hybrid approach to TPRM, where they gain solutions tailored to their needs and realize a rapid return on investment.
