4 min read

Related Posts
Subscribe to Venminder
Get expert insights straight to your inbox.
Ready to Get Started?
Schedule a personalized solution demonstration to see if Venminder is a fit for you.
Gain a 360-degree view of third-party risk by using our SaaS software to centralize, track, automate, assess and report on your vendors.
Venminder's team of experts can review vendor controls and provide the following risk assessments.
Let us handle the manual labor of third-party risk management by collaborating with our experts to reduce the workload and mature your program.
Overview
Document Collection
Policy/Program Template/Consulting
Virtual Vendor Management Office
Vendor Site Audit
Let us handle the manual labor of third-party risk management by collaborating with our experts.
Learn more on how customers are using Venminder to transform their third-party risk management programs.
Venminder is used by organizations of all sizes in all industries to mitigate vendor risk and streamline processes
We focus on the needs of our customers by working closely and creating a collaborative partnership
Trends, best practices and insights to keep you current in your knowledge of third-party risk.
Earn CPE credit and stay current on the latest best practices and trends in third-party risk management.
Join a free community dedicated to third-party risk professionals where you can network with your peers.
Receive the popular Third Party Thursday newsletter into your inbox every Thursday with the latest and greatest updates.
Download samples of Venminder's vendor risk assessments and see how we can help reduce the workload.
Whenever you obtain a product or service from a third party, you expose your organization and your customers to what is known as third-party risk. The specific types and amounts of risk present in a third-party engagement will vary greatly depending on the product or service. Identifying and understanding these risks is the first step in managing them.
Read on to learn more about the most common risks your organization may face when purchasing products and services from third parties.
The term “third-party risk” refers to any risk introduced to your organization or its customers through an engagement with a third party. Third-party risk management is the process and practice of identifying, assessing, and managing those risks.
Before we dive further into risk types, there are two risk categories to understand. These are known as inherent risk and residual risk:
Often, the third-party controls can adequately address the risk, justifying your organization's decision to move forward with the relationship. However, controls are sometimes insufficient, and the residual risk may be too much for your organization to accept, resulting in a decision to avoid the relationship altogether.
There are various risks depending on the type of third-party product or services your organization uses. Let's look at several of the most common types of third-party risks:
It's important to note that these are only the most common types of third-party risks that your organization may face. There are, of course, more risks (such as geopolitical and ESG risks), and new risks are always evolving. Therefore, it’s crucial to perform thorough risk assessments to identify and understand the risks that must be managed to safeguard your organization and its customers.
Every third-party relationship contains some risk; however, to manage those risks, you must first fully understand what third-party risks are. You must remain diligent as your organization outsources products and services and be aware of the risks posed by third parties.
Get expert insights straight to your inbox.
Schedule a personalized solution demonstration to see if Venminder is a fit for you.