Difference between normal risk management and vendor/third party risk management??

[Manikantahere]

Can't we do third-party risk management using Policy and compliance management and normal risk management ?

is that mean tprm is for third parties and normal risk management is always internal or inside organisation?

what makes difference between them?

[Community Alums]

Yes, you can use Policy and Compliance Management alongside normal Risk Management to address Third-Party Risk Management (TPRM), but there are key distinctions between them.

Key Differences:

1. Scope:

   • TPRM: Focuses specifically on risks associated with third-party vendors and partners. It evaluates their security practices, compliance, and potential impacts on your organization.
   • Normal Risk Management: Typically addresses risks that arise internally within the organization. This includes operational, financial, compliance, and strategic risks.

2. Objectives:

   • TPRM: Aims to ensure that third parties meet your organization’s risk appetite and compliance standards. It assesses the potential impact of third-party relationships on your operations.
   • Normal Risk Management: Seeks to identify, assess, and mitigate risks that could affect the organization’s overall health and objectives.

3. Processes:

   • TPRM: Involves due diligence processes, vendor assessments, contract reviews, and ongoing monitoring of third-party performance and compliance.
   • Normal Risk Management: Involves risk assessments, control implementations, incident management, and regular reviews of internal processes.

4. Regulatory Focus:

   • TPRM: Often involves compliance with external regulations that pertain specifically to third-party interactions, such as GDPR, HIPAA, or industry-specific guidelines.
   • Normal Risk Management: Centers around internal policies and regulations relevant to the organization’s operations.

Please mark my answer correct and helpful if this works for you

Thanks and Regards 

Sarthak

[donaldruthe]

Although you "can" use the core IRM to manage TPRM compliance and risk, I would not recommend it.  TPRM, is designed based upon the type of vendor you will be utilizing (expecially the most recent iteration) and the type of data that the vendor will be processing.  For example, one vendor might process or utilize PCI data while another may not.  TPRM allows you to send a questionnaire to the internal team which would determine the questions that your vendor gets.  TPRM also has the ability to tie into contracts and other vendor components.  TPRM is also designed so vendors do not have to go into your environment, but can use a vendor portal.  Utilizing the vendor portal allows the vendor to also re-direct the questionnaires to different teams.  There was a lot of thought and design into the TPRM to take into account the unique challenging assessing an extermal entity compared to an internal entity.  I also would not want to let a vendor into my environment without performing the proper due dilligence.  Having performed both internal and external assessments, there is a lot of value in keeping them separate.  Feel free to contact me with further questions.