Best 11 Third-party Risk Management Software in 2024

Every link in your supply chain and each third-party relationship carries inherent risks. While eliminating all third-party risks is impractical, you can focus on identifying, managing, and mitigating them.

Some organizations still rely on outdated email questionnaires and manual spreadsheets to track third-party activities, but many are shifting towards a centralized, data-driven approach to support strategic decisions. This enables organizations to comprehensively understand overall risk and leverage additional capabilities such as automation and real-time reporting.

With centralized TPRM, evaluating thousands of third-party entities, prioritizing them based on risk, and implementing targeted risk mitigation strategies is possible.

Primary Driver for TPRM Programs

Regulatory pressures have always been the primary driver for third-party risk management (TPRM) programs. Recently, other factors such as data breaches, supply chain disruptions, and board pressures have emerged as significant catalysts for investment in TPRM initiatives. Cyberattacks associated with software supply chain vulnerabilities have highlighted the significance of third-party solid risk management strategies.

The next frontier lies in transforming TPRM from a compliance-driven function into a strategic enabler for organizations.

Insights from Deloitte’s 2023 TPRM Survey

As organizations continue to rely heavily on third-party vendors, effective Third-Party Risk Management (TPRM) has become more critical and complex. Deloitte’s 2023 Third-Party Risk Management Survey sheds light on the current landscape of TPRM. It captures insights from over 1,300 TPRM leaders across 40 countries. The report, titled “Navigating the headwinds: Enhancing agility to regain momentum,” highlights the key challenges, priorities, and trends in TPRM, providing valuable benchmarks and best practices for organizations striving to manage third-party risks effectively and sustainably.

Main Challenges Impacting TPRM:

• Geopolitical challenges were cited by 61% of TPRM leaders.
• Inflationary trends were a concern for 46% of respondents.
• 40% of TPRM leaders highlighted increasing ESG (Environmental, Social, and Governance) pressures.
• Logistic disruptions affected 39%.
• Labor market shortages were a challenge for 34%.

Outlook on Managing Third-Party Relationships:

• 32% of TPRM leaders expressed optimism about managing third-party relationships.
• 83% of respondents were either neutral or optimistic.

Top Priorities for TPRM Leaders:

• 63% of TPRM leaders aimed to refresh their TPRM methodologies.
• 48% emphasized the need to strengthen executive leadership roles in TPRM.
• Enhancing TPRM-related skills and talent was a priority for 47%.
• 45% underscored the importance of continued investment in TPRM technology.

Focus on ESG:

• Corporate ethics and responsible behaviors were the top focus areas for 69%.
• 51% prioritized environmental concerns.
• 50% considered labor risks important.

Quantitative Methods in ESG Assessment:

• The use of quantitative scoring methods in ESG assessments increased to 25%, up from 18% in 2022.

Concerns about Data Quality:

• Approximately one-third of respondents rated the quality of both external and internal ESG data as “low” or “very low,” indicating a need for better data traceability and transparency.

Despite facing significant headwinds, many TPRM leaders, particularly those investing in TPRM capabilities, remain optimistic about the future. 

How to Choose the Right TPRM Tools

Selecting the best third-party risk management software requires careful consideration of features, compatibility, pricing, and user feedback. Organizations should evaluate how each solution improves third-party risk exposure, enables compliance reporting, and aligns with their specific business requirements.

Third-party risk management is critical in today’s interconnected business environment. By leveraging the best TPRM platforms, organizations can effectively mitigate risks, ensure compliance, and protect their reputation. 

Invest in robust TPRM software to stay ahead of evolving cyber threats and safeguard your organization’s assets.

Top 11 Third-Party Risk Management Solutions

1. Centraleyes Third-Party Risk Management (See it in action)

Centraleyes offers a cloud-based Third-Party Risk Management software designed to centralize and streamline risk-related processes associated with third-party vendors. The platform provides a comprehensive management console for overseeing third-party risks, along with structured workflows and frameworks for thorough risk assessments. 

Alerts and advanced dashboards ensure the cyber risk team is immediately aware of any security gaps in a vendor’s assessment, allowing faster and more efficient remediation.

Centraleyes is the only hybrid vendor risk solution that ensures constant updates of any security gaps in a vendor’s risk profile and allows for faster and more efficient remediation.

Advanced Risk Register

Centraleyes boasts an advanced, customizable risk register that sets it apart in the market. Risks are automatically mapped between compliance and risk management frameworks to provide a birds-eye view of where you stand cyber-wise.

We’re committed to innovation and continuously enhancing our platform to meet your evolving needs. With AI integration on the horizon, expect even more efficient and effective risk assessment and mitigation processes.

Comprehensive Risk Assessment

With Centraleyes, you can confidently assess and enhance your internal cybersecurity posture as well as your vendors’ security posture. Our platform empowers businesses to analyze, prioritize, quantify, and mitigate cyber risks effectively, ensuring robust security resilience in today’s evolving threat landscape.

Integrated Platform with Flexible Features

Experience the convenience of managing internal, third-party, and board-related risks from a single platform. Centraleyes offers an integrated solution with flexible features, enabling seamless risk management across your organization. Say goodbye to scattered processes and hello to centralized efficiency.

Customization and Scalability

Centraleyes is designed to adapt to your organization’s unique requirements, regardless of size or industry. Our highly customizable and scalable platform ensures it grows with your business and evolves alongside your risk landscape.

2. OneTrust Third-Party Risk Management

OneTrust is a leading governance, risk management, and compliance solutions provider. Its Third-Party Risk Management platform offers comprehensive features for efficiently managing risks associated with third-party vendors. 

OneTrust’s solution facilitates streamlined risk assessment processes, provides in-depth insights into supply chain dependencies, and ensures compliance with regulatory standards such as NIST, HIPAA, PCI DSS, GDPR, EBA, and CCPA. With real-time data updates and verified data quality, OneTrust enables organizations to make informed decisions and mitigate third-party risks effectively.

3. Process Unity CyberGRX

CyberGRX is a prominent third-party risk management platform that aggregates risk information from diverse sources to provide organizations with comprehensive insights into third-party risks. 

The platform’s AIR Insights module offers triage support and automated risk management tasks, while the Framework Mapper tailors risk management efforts to specific data protection standards. CyberGRX’s solution also provides visibility into supplier dependencies, facilitating thorough risk assessments and ensuring regulatory compliance.

4. BitSight Third-Party Risk Management

BitSight’s third-party risk management solution leverages advanced algorithms and daily security assessments to empower organizations to handle third-party risks effectively. The platform offers automated onboarding for streamlined vendor processes, real-time reporting capabilities for immediate risk insights, and customizable workflows for prioritizing assessments. With seamless integration with various TPRM software, BitSight provides organizations with actionable insights to mitigate third-party risks proactively.

5. Diligent ThirdPartyBond

Diligent’s ThirdPartyBond solution is a comprehensive offering for managing risks associated with third-party vendors. It features Key Performance Indicator (KPI) and Key Risk Indicator (KRI) driven reports, centralized third-party inventory with bulk import functionality, and adaptive vendor surveys with advanced risk-scoring mechanisms. With strong risk analytics powered by advanced machine learning algorithms, Diligent enables organizations to effectively identify, assess, and mitigate third-party risks.

6. Venminder Third-Party Risk Management

Venminder provides comprehensive third-party risk management solutions focusing on oversight, risk assessments, third-party due diligence software, and vendor onboarding. The platform offers issue and SLA management for tracking vendor-related concerns, automated, customizable questionnaires for streamlined data collection, and oversight management with vendor scorecard tracking. With extensive learning resources and scalable solutions, Venminder empowers organizations to manage third-party risks efficiently.

7. Archer Third-Party Governance

Archer Third-Party Governance offers robust risk quantification software designed to aggregate risks and fortify organizations against disruptions. The platform features customizable risk indicators for accurate risk assessment, Bowtie Diagrams, illustrative tools for risk and mitigation representation, and customizable reporting and monitoring features. 

With industry-targeted design and AI-powered assessments, Archer enables organizations to manage third-party risks comprehensively and proactively mitigate potential threats.

8. Prevalent

Prevalent offers a comprehensive Third-Party Risk Management (TPRM) Platform designed to help businesses mitigate security and compliance exposures across the entire vendor lifecycle. Focusing on selecting, onboarding, and offboarding vendors, Prevalent’s platform provides risk intelligence for over 10,000 vendors, streamlining access to and analysis of third-party risk data.

Prevalent is recommended for larger organizations with dedicated resources for managing third-party risk and mid-sized organizations seeking supplier risk management with robust managed support offerings.

9. LogicGate

LogicGate’s Risk Cloud enables enterprises to manage workflows more efficiently and decrease security risks by providing a user-friendly platform for governance, risk, and compliance (GRC) requirements. LogicGate’s intuitive drag-and-drop interface allows for the automation of risk management procedures, such as vendor onboarding and risk surveying, without the need for coding experience.

The platform’s conditional routing rules and customizable processes ensure that risk assessment surveys are completed on time and that data for supplier risk management is captured seamlessly. LogicGate’s configurable reporting options and cloud-based architecture make it an excellent choice for mid-to large-sized businesses looking for an easy way to manage supplier risk and compliance requirements.

10. LogicManager

LogicManager’s Vendor Management System (VMS) provides a comprehensive third-party and vendor management solution for financial services firms. LogicManager enables businesses to efficiently assess vendor risk with customizable questionnaires and automated risk analysis.

The platform’s reporting features, which include data visualization dashboards and AI-powered risk assessments, enable enterprises to make well-informed decisions and effectively prioritize remedial activities. LogicManager’s cloud-based deployment and comprehensive connections with popular business applications ensure scalability and management convenience. It is an excellent option for firms that streamline their vendor risk management operations.

11. SecurityScoreCard Platform

SecurityScorecard’s Third-Party compliance software offers enterprises a dependable and user-friendly solution for measuring the security risk of their suppliers and third parties. By categorizing security into 10 scores and continuously monitoring cybersecurity risks, SecurityScorecard gives businesses visibility into potential vulnerabilities throughout their vendor ecosystem.

The platform’s simple pricing model and flexible deployment options suit businesses of all sizes. In contrast, its extensive feature set, which includes automated risk scoring, compliance documentation management, and risk visualization, makes it an invaluable tool for proactive risk mitigation and compliance initiatives.

What are Third-Party Risks?

Third-party risks arise from external entities integral to an organization’s operations. Remember that third-party security breaches affect your bottom line. These risks include:

• Supplier Risks: Risks associated with suppliers’ security practices, especially if they can access sensitive information or provide critical services. 
• Service Provider Risks: External service providers, such as cloud service providers or IT outsourcing partners, introduce risks related to the security measures they implement.
• Business Partner Risks: Collaborative ventures and partnerships may expose organizations to the cybersecurity postures of their partners, impacting overall security.

Challenges and Pitfalls in the TPRM Lifecycle

Third parties add multiple layers of complexity to security operations. Many organizations struggle with fragmented digital tools and outdated manual processes, leading to fatigue, noncompliance, operational inefficiencies, missed opportunities, and even cyber-attacks. Here are some challenges commonly encountered in the TPRM lifecycle.

Scaling Challenges 

If TPRM is already a struggle, keeping up with your vendor due diligence only becomes more congested as businesses grow. While questionnaires and fill-out- forms have their place in a vendor risk management program, it is nearly impossible to scale as your company grows using a manual approach. 

Fragmented Technology 

Organizations relying on a patchwork of legacy spreadsheets, homegrown solutions, and customized systems face several issues. These are synonymous with poor user experiences, limited data accessibility, high maintenance costs, and offline processes that increase the risk of non-compliance and data breaches. 

Lack of Resources

Most businesses need more resources to maintain a fit-for-purpose TPRM operating model. The volume of work and complexity involved in properly vetting third-party vendors is a growing concern among business leaders.

Getting Started with TPRM

Define Goals and Scope

A well-designed Third-Party Risk Management (TPRM) program starts with well-defined objectives and parameters. The Digital Operational Resilience Act, the NIST CSF 2.0, and the NIS2 Directive are well-established frameworks that businesses should incorporate into their strategies. These frameworks standardize business continuity planning and testing, information technology, cybersecurity, and third-party dependency management. Gap analysis with these frameworks is a great place to start.

Maintain Inventory and Establish Policies and Procedures

A thorough grasp of third-party inventory is vital for effective management. Businesses must properly catalog and oversee their relationships with third parties to successfully reduce risk.

The key to successful Third-Party Risk Management is the development of transparent policies and processes. A major obstacle can be the lack of proper coordination among internal stakeholders. Firms should ensure that different departments work together and are on the same page.

Continuous Monitoring

Going beyond initial due diligence, effective continuous monitoring of third parties enables dynamic risk awareness and reporting. This continuous supervision guarantees the prompt identification and resolution of risks.

Establish a Governing System

In order for TPRM to be successful, a system of governance that incorporates different roles and teams must be established. Organizations should establish rules to ensure consistency, regardless of who owns them. Organizations operating in more than one jurisdiction should adopt a global policy and adjust it locally as necessary.

Technology and Automation

TPRM programs can be enhanced by integrating cross-functional workflows, automating repetitive tasks, and utilizing external data providers. Automating processes and improving reporting to senior leadership improve risk management capabilities as a whole.

Centraleyes Third-Party Risk Management Platform

Are you seeking more than compliance and due diligence in your third-party risk management solution? Centraleyes offers a revolutionary approach to third-party risk management, going beyond superficial compliance practices to effectively strengthen organizations’ cybersecurity posture.

Experience the Centraleyes difference today and take your risk management to new heights. With Centraleyes, you can strengthen your cybersecurity posture, streamline your processes, map controls between frameworks, and stay ahead of threats.

Don’t just take our word for it – hear from organizations that have benefited from Centraleyes. 

Contact us today to learn more.