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FREE TEMPLATE

Third-Party Risk Management
Policy Template

This third-party risk management policy template contains best practices, descriptions, and processes your organization can use to meet regulatory requirements and/or follow the third-party risk management lifecycle. Customize and align to your own third-party risk management framework.

The third-party risk management policy template governs your organization’s rules, boundaries, and guidelines for TPRM. It defines what’s necessary to meet regulatory requirements or expected standards. 

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What is a third-party risk management policy?

The policy is the first document created for your third-party risk management program. It identifies the roles, responsibilities, regulations, and overall purpose of a  program. The TPRM policy template provides a broad outline on the areas of due diligence, risk assessments, contract management, and establishes how the board and senior management will stay informed of third-party risk management activities. 

The third-party risk management policy should influence all major TPRM decisions within your organization and keep TPRM activities within set boundaries. For regulated industries, the policy should reflect regulatory requirements.  

A TPRM policy describes, at a high level, program requirements, components, roles, and responsibilities for each stage of the lifecycle.  

Who should review the third-party risk management policy?

Your organization’s board and/or senior management should review and approve the TPRM policy. Internal employees as well as internal and external auditors and regulators should be able to view the policy.

What are the key components of a third-party risk management policy?

Key components of your third-party risk management policy include an overview, purpose, and policy statement. Include version numbers and the date of the last review and approval. 

A third-party risk management policy should also include the scope of your TPRM program, oversight and accountability for the program, roles and responsibilities, documentation and reporting requirements, and third-party risk management program requirements by lifecycle stage. 

Our free third-party risk management policy template includes sections to ensure each key component is included in your organization’s policy.  

What regulatory guidance does the Third-Party Risk Management Policy template follow?

Much of the content and design of this template closely resembles actual regulatory guidance, specifically the Interagency Guidance on Third-Party Relationships: Risk Management. We have chosen to use this guidance as it has been developed by three financial regulators, the OCC, FDIC, and the Fed. The practices described in the guidance are widely regarded as the "gold standard" for third-party risk management. It’s worth noting that financial regulatory guidance has long influenced what becomes best practices for third-party risk management.

Is this third-party risk management policy template really free?

Yes! We know this template is valuable (and that many organizations put a price on accessing templates), but as passionate advocates for better third-party risk management practices, theres no better way to assist than by giving third-party risk professionals a helping hand with this customizable template. You still have a lot of work to do to customize and align to your organization, but we’re hoping this gets you there faster! 

Is this policy customizable to match what my organization does?

Absolutely, and we urge you to do so! This template is formatted in a Microsoft Word document so it’s easy to change any aspect. Instructions point out what specially to edit and the guide gives best practices and tips for your third-party risk management policy.

Who created this third-party risk management template?

This free third-party risk management policy template was carefully crafted by Venminder’s highly skilled third-party risk professionals who have not only done the job in their own careers, but today advise Venminder's 1,200+ customers, many of whom are subject to the strictest regulatory guidance.