Manage and mitigate third-party business risks effectively with our comprehensive workflow template, fostering compliance, strategy, and thorough risk assessment.
1
Identify business units involved in the third party relationship
2
Define the scope of the third party relationship
3
Identify significant risks associated with the relationship
4
Classify risks into categories like operational, financial, reputational, etc.
5
Conduct third-party risk assessment
6
Approval: Risk Assessment
7
Develop a risk management strategy
8
Define objectives of the risk management strategy
9
Identify appropriate metrics and benchmarks for measuring risk management performance
10
Design and implement management controls to mitigate identified risks
11
Create a contingency plan for significant risks that can't be mitigated
12
Implement an audit process to ensure compliance with risk management strategy
13
Approval: Audit Process
14
Document the risk management policy
15
Approval: Risk Management Policy
16
Communicate the policy to all relevant parties
17
Train employees on the policy requirements
18
Monitor compliance with the policy
19
Schedule periodic reviews of the policy
20
Update the policy as necessary
Identify business units involved in the third party relationship
In this task, you will identify the business units that are involved in the third party relationship. This is important to ensure that all relevant stakeholders are included in the risk management process. Consider which departments or teams interact with the third party and may be affected by any risks that arise. The desired outcome of this task is a clear understanding of the different business units involved and their roles in the relationship. Think about potential challenges such as identifying all relevant business units and ensure that you have the necessary resources or tools, such as organizational charts or stakeholder lists, to complete this task.
1
Support
2
Sales
3
Finance
4
Operations
5
Legal
1
Review and approve contracts
2
Monitor performance metrics
3
Conduct periodic audits
Define the scope of the third party relationship
This task involves defining the scope of the third party relationship. Consider the specific services or products provided by the third party and the extent of their involvement in your organization. The outcome of this task should be a clear understanding of what the third party is responsible for and how they interact with your organization. Think about potential challenges such as incomplete or unclear information from the third party and ensure that you have a clear process for gathering and documenting the scope of the relationship.
1
Critical business functions
2
Limited data access
3
Transactional services
1
No data sharing allowed
2
Limited data sharing with restrictions
3
Full data access
Identify significant risks associated with the relationship
This task requires identifying the significant risks associated with the third party relationship. Consider potential risks such as data breaches, financial instability, or reputational damage. The desired outcome of this task is a comprehensive list of the significant risks that need to be managed. Think about potential challenges such as lack of visibility into the third party's internal processes or limited information about their security practices. Ensure that you have access to relevant documentation or can engage with subject matter experts to gather information.
1
Operational
2
Financial
3
Reputational
4
Legal
5
Compliance
Classify risks into categories like operational, financial, reputational, etc.
Conduct third-party risk assessment
Approval: Risk Assessment
Will be submitted for approval:
Conduct third-party risk assessment
Will be submitted
Develop a risk management strategy
Define objectives of the risk management strategy
Identify appropriate metrics and benchmarks for measuring risk management performance
Design and implement management controls to mitigate identified risks
Create a contingency plan for significant risks that can't be mitigated
Implement an audit process to ensure compliance with risk management strategy
Approval: Audit Process
Will be submitted for approval:
Implement an audit process to ensure compliance with risk management strategy
