As businesses become more and more interconnected, effectively managing third-party risks has become extremely important to protecting operations and ensuring compliance with various regulations. Third-party risk management (TPRM) software is an important tool in this effort, enabling organisations to assess, monitor, and mitigate the risks associated with their vendors, suppliers, and external partners.
Top 13 Third-Party Risk Management (TPRM) Softwares In India
Whether your organisation requires TPRM software designed for large enterprises, solutions with AI-driven capabilities, or platforms that emphasise regulatory compliance, several leading providers offer robust options. Below, we explore the 13 most effective TPRM software solutions in 2024, in no particular order:
1. AuthBridge
AuthBridge offers a comprehensive Third-Party Risk Management (TPRM) solution designed to help businesses manage, monitor, and mitigate risks associated with their third-party relationships. The solution is built on advanced technology and provides a robust framework for businesses to ensure compliance, reduce vulnerabilities, and protect their reputation.
End-to-End Risk Management
- Holistic Risk Assessment: AuthBridge provides a full-spectrum assessment of third-party risks, covering financial, legal, regulatory, operational, and reputational areas. This allows businesses to gain a complete understanding of their third-party entities.
- Supply Chain Due Diligence: Ensures continuous due diligence throughout the entire relationship with third parties, not just at the onboarding stage, helping identify and mitigate risks over time.
Compliance and Regulatory Assurance
- Comprehensive Compliance Checks: Detailed checks against local and international regulations, including Anti-Money Laundering laws, and data protection standards like the DPDP Act, and GDPR, are conducted to ensure full compliance.
- Audit-Ready Documentation: The platform provides the necessary documentation and reports to demonstrate compliance during audits, reducing the risk of regulatory penalties.
Continuous Monitoring and Alerts
- Real-Time Monitoring: Continuous monitoring of third-party entities with real-time alerts on any changes in their status or risk profile helps businesses stay ahead of potential risks.
- Automated Red Flag Alerts: The system includes automated alerts that flag suspicious activities or non-compliance issues, enabling immediate corrective actions.
Technology-Driven Insights
- AI-Powered Risk Analysis: Leveraging AI and machine learning to analyse large data sets, AuthBridge identifies patterns and anomalies that may indicate potential risks, enabling data-driven decision-making.
- Customisable Dashboards: The platform offers customisable dashboards for a clear overview of the third-party risk landscape, aiding quick decisions and efficient management.
Third-Party Screening and Verification
- Thorough Background Screening: Extensive background checks on third-party entities, including verification of legal standing, financial health, and overall reputation, ensure credible and reliable partnerships.
- Global Watchlist Screening: The solution includes screening against global sanctions, watchlists, and adverse media to prevent engagements with entities involved in illegal or unethical activities.
Risk Scoring and Prioritisation
- Dynamic Risk Scoring Models: Risk scores are assigned to third-party entities based on various factors, dynamically updated as new information becomes available, helping prioritise and address high-risk relationships.
- Risk Mitigation Prioritisation: The solution assists in prioritising risk mitigation efforts based on risk scores, ensuring that resources are allocated effectively to manage the most critical risks.
Efficient Onboarding and Contract Management
- Streamlined Onboarding: The onboarding process for third-party vendors is automated, reducing the time and effort required while ensuring necessary due diligence before contract signing.
- Contract Lifecycle Management: Tools for managing the entire lifecycle of third-party contracts, from initiation to renewal or termination, ensure risks are managed at every stage of the relationship.
Industry-Specific Solutions
- Tailored TPRM: Industry-specific TPRM solutions address unique risks faced by different sectors like BFSI, healthcare, manufacturing, and IT/ITES, ensuring relevant and actionable insights.
Data Privacy and Security
- Secure Data Handling: Ensures all data processed is handled securely with encryption and other advanced security measures to protect sensitive information from unauthorized access.
- Data Protection Compliance: Designed to comply with global data protection regulations by being ISO/IEC 27001:2013 and SOC 2 Type II Certified, maintaining the highest standards of data privacy.
2. UpGuard
UpGuard is a robust third-party risk management software known for its comprehensive risk assessment capabilities. It categorises risks into six key areas: email security, website risks, phishing and malware, network security, brand protection, and reputation risk. UpGuard’s TPRM software is especially valuable for its pre-built questionnaires and libraries, which accelerate vendor assessments and improve third-party security postures. With a user-friendly interface and frequent updates, UpGuard is an excellent choice for businesses of all sizes looking for reliable TPRM software with automation and data privacy compliance features.
3. SecurityScorecard
SecurityScorecard excels in providing continuous security ratings across ten categories, making it a top TPRM provider for businesses needing comprehensive cybersecurity risk management. This third-party risk assessment software offers automated action plans to improve security scores, and its tools for compliance management and breach insights are indispensable for organisations prioritising regulatory compliance. SecurityScorecard is a versatile solution, suitable for small businesses and large enterprises alike, offering proactive risk mitigation and seamless compliance management.
4. BitSight
BitSight’s TPRM software leverages advanced algorithms and daily security assessments to minimise risks associated with third-party vendors. The platform’s continually updated Security Ratings provide a solid, data-driven foundation for evaluating and managing third-party risks. With features like automated vendor onboarding and data-driven validation of vendor responses, BitSight ensures that companies can make informed decisions. This makes it one of the best TPRM solutions for organisations looking for a blend of efficiency, accuracy, and continuous monitoring.
5. OneTrust
OneTrust’s TPRM software is tailored for businesses needing to adhere to strict data privacy and regulatory compliance standards, such as GDPR and HIPAA. The platform offers tools for data inventory mapping, privacy impact assessments, and automated workflows, all accessible through an intuitive web portal. While its advanced analytics and risk mitigation tools could be stronger, OneTrust remains a top choice for organisations that prioritise data privacy compliance and regulatory adherence in their third-party risk management processes.
6. Prevalent
Prevalent’s TPRM platform offers a comprehensive solution for mitigating security and compliance risks throughout the vendor lifecycle. Ideal for larger organisations or mid-sized companies with dedicated TPRM resources, Prevalent excels in providing continuous risk monitoring, automated assessments, and detailed risk scoring. With its strong vendor intelligence networks and flexible, hybrid approach, Prevalent delivers tailored solutions that offer a rapid return on investment, making it one of the top TPRM providers in the market.
7. ProcessUnity
ProcessUnity’s Vendor Risk Management (VRM) software streamlines risk and compliance programs by automating vendor assessment, monitoring, and management. This platform is particularly effective for large enterprises that require robust TPRM software with risk scoring and continuous monitoring capabilities. ProcessUnity’s customisation options and integration with other governance, risk, and compliance (GRC) tools make it a powerful choice for organisations aiming to manage third-party risks effectively.
8. Centraleyes
Centraleyes offers a cloud-based TPRM solution designed for scalability and customisation, providing a comprehensive console for overseeing and assessing risks. With features like an advanced risk register, real-time alerts, and customisable dashboards, Centraleyes ensures that security teams are promptly informed of any vulnerabilities. As businesses evolve, Centraleyes plans to integrate AI to further enhance risk assessment and mitigation processes, making it a forward-thinking choice for companies seeking TPRM software with AI and automation features.
9. Diligent ThirdPartyBond
Diligent’s ThirdPartyBond stands out for its advanced risk analytics powered by machine learning algorithms. This TPRM software offers features like KPI and KRI-driven reports, centralized third-party inventory, and adaptive vendor surveys with advanced risk-scoring. Although the platform’s editing features primarily rely on scripting, which may be challenging for non-technical users, its capabilities in monitoring SLA performance and managing contracts make it a valuable tool for enterprises needing a sophisticated TPRM solution with regulatory compliance features.
10. Venminder
Venminder is a user-friendly SaaS solution for third-party risk management, offering tools for contract management, vendor onboarding, risk assessments, and due diligence. The platform’s customisable vendor questionnaires, SLA management, and vendor scorecard tracking ensure comprehensive oversight of vendor relationships. Venminder’s extensive library of learning resources and scalable services make it an adaptable solution for organisations of any size looking for TPRM software that simplifies risk management processes.
11. LogicGate
LogicGate’s Risk Cloud is a highly configurable platform that streamlines governance, risk, and compliance processes. Its drag-and-drop interface automates tasks like vendor onboarding and risk surveying, making it easy for businesses to manage third-party risks without needing extensive technical skills. The platform’s real-time visibility into the risk landscape, coupled with integration with tools like Jira and Slack, makes LogicGate a versatile option for enterprises seeking TPRM software that enhances decision-making through data-driven insights.
12. Archer
Archer Third-Party Governance offers powerful tools for managing and mitigating third-party risks, with customisable risk indicators and advanced visualization tools like Bowtie Diagrams. The platform’s AI-powered assessments and industry-specific design enable organisations to evaluate risks comprehensively and address potential disruptions proactively. Archer’s cloud-based deployment ensures scalability, making it a versatile TPRM software solution for organisations looking to enhance business resilience and streamline vendor risk management.
13. Panorays
Panorays is a leading TPRM platform that efficiently manages cybersecurity risks associated with third-party vendors. It offers AI-powered cybersecurity questionnaires, extended attack surface assessments, and continuous monitoring, providing a comprehensive view of vendor security postures. Panorays excels in regulatory compliance and quick risk alerts, making it a strong choice for businesses focused on enhancing cybersecurity resilience.
Conclusion
As businesses become more interconnected, effective Third-Party Risk Management (TPRM) is essential to safeguard operations, compliance, and reputation. The right TPRM software helps mitigate risks associated with vendors and partners, offering solutions from AI-driven insights to robust compliance tools. The best TPRM platforms integrate seamlessly with existing processes, enhance risk management, and scale with your business. By evaluating each option’s features and strengths, organisations can choose a solution that protects their operations and supports long-term resilience.
FAQs
Third-Party Risk Management (TPRM) is a process companies use to identify, assess, and manage risks posed by vendors and partners. It involves risk assessment, due diligence, ongoing monitoring, and mitigation planning to ensure third parties don’t expose the company to operational, reputational, regulatory, or security risks.
Yes, Third-Party Risk Management (TPRM) is considered part of Governance, Risk, and Compliance (GRC). TPRM focuses specifically on identifying, assessing, and managing risks associated with third-party relationships, while GRC provides a broader framework for managing governance, risk, and compliance across an organization. Integrating TPRM within GRC enhances overall risk visibility and helps ensure that third-party risks align with the organization’s compliance and governance objectives.
A practical example of Third-Party Risk Management (TPRM) is a company onboarding a background verification provider to streamline employee checks. Before partnering, the company evaluates the provider’s data security measures, compliance with privacy regulations (like GDPR), and incident response capabilities to ensure that employee data remains secure throughout the verification process. This due diligence mitigates potential risks related to data breaches, regulatory fines, and reputational damage.
The most famous tool in risk management is the Risk Assessment Matrix (RAM), also known as the Risk Matrix. It is widely used to evaluate the likelihood and impact of risks, helping organizations prioritize and address potential threats effectively. By plotting risks based on probability and severity, it aids in decision-making and ensures focused mitigation strategies.
SWOT Analysis: Evaluates Strengths, Weaknesses, Opportunities, and Threats to understand both internal and external factors impacting a project or organization. It helps in identifying risks and strategic opportunities.
Failure Mode and Effects Analysis (FMEA): Used to identify potential points of failure in a process or system and assess the severity, likelihood, and detectability of each failure, allowing for proactive mitigation.
Monte Carlo Simulation: A quantitative method that uses probability distributions to model and predict a range of possible outcomes, helping in assessing risk under uncertainty.
Bowtie Analysis: Visualizes the pathways and barriers of risk events from causes to consequences, helping in understanding how to prevent and mitigate risks effectively.
Risk Registers: A structured log of identified risks, their likelihood, impact, and assigned mitigations, allowing for consistent monitoring and updating.
Root Cause Analysis (RCA): Focuses on identifying the underlying causes of a risk or problem, enabling effective resolution and prevention.
Third-Party Risk Management (TPRM) is a strategy focused on identifying, assessing, monitoring, and mitigating risks associated with an organisation’s third-party relationships. This includes risks from vendors, suppliers, contractors, and other external entities. The strategy involves due diligence processes, regular assessments, compliance checks, and monitoring mechanisms to ensure third-party activities align with the organisation’s security, legal, regulatory, and operational standards. A robust TPRM strategy helps organisations minimise exposure to operational disruptions, data breaches, regulatory violations, and reputational damage arising from third-party partnerships.
In Third-Party Risk Management (TPRM), risk domains are the key areas where potential risks may arise from third-party relationships. Common risk domains include:
- Financial Risk: The risk of third-party financial instability affecting service continuity.
- Operational Risk: Risks related to operational failures, process disruptions, or supply chain issues.
- Compliance and Regulatory Risk: Risks of non-compliance with laws and regulations, leading to penalties or legal issues.
- Cybersecurity Risk: The risk of data breaches, cyber-attacks, and unauthorised data access.
- Reputational Risk: Risks that negatively impact a company’s reputation due to third-party actions.
- Strategic Risk: Risks arising from misaligned third-party strategies or goals affecting business objectives.
- Environmental, Social, and Governance (ESG) Risk: Risks related to sustainability, ethical practices, and corporate governance.
The Third-Party Risk Management (TPRM) framework is a structured approach organisations use to identify, assess, manage, and mitigate risks associated with external vendors and partners. It involves evaluating potential risks these third parties may pose to the organisation’s operations, data, and reputation. The TPRM framework typically includes risk assessment, due diligence, continuous monitoring, and governance practices to ensure third-party relationships remain secure, compliant, and aligned with the organisation’s objectives.
