How to Create an Effective Third-Party Risk Management Policy

A famous 17th-century poem tells us, “No man is an island.” The same is true for businesses, which can't operate as “islands,” without connections to third parties, and expect to function on a basic level much less grow and thrive. Working with third parties such as vendors and suppliers is essential to meet strategic objectives. However, doing business with third parties is not without inherent risk. To guard against these risks, mature organisations develop and utilise third-party risk policies.