In 2025, organizations are facing an increasingly complex landscape when it comes to managing external vendors, suppliers, and partners. Third-party risk management (TPRM) has become more critical than ever, especially with growing global interconnectivity, regulatory scrutiny, and rising cyber threats.
As businesses continue to outsource services and rely on external entities for operational efficiency, the need for effective third-party risk assessment is no longer optional—it's a strategic imperative.
This blog explores key strategies for third-party risk assessment in 2025 and also highlights insights from the upcoming 2nd Annual Supply Chain Risk and Resilience Forum, a must-attend event for professionals involved in supply chain management and third-party risk management.
Why Third-Party Risk Management is More Crucial Than Ever
According to a 2025 Gartner report, over 65% of organizations experienced at least one third-party-related incident in the past year—ranging from data breaches to compliance violations.
When third parties are compromised, your business can face:
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Reputational damage
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Regulatory fines
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Financial loss
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Operational disruption
The challenge? Most companies have hundreds (even thousands) of third-party relationships. Monitoring them manually is nearly impossible. That’s where a structured third-party risk management framework comes into play.
Key Strategies for Third-Party Risk Assessment in 2025
1. Categorize Vendors Based on Risk
All third parties are not equal. Categorize them based on:
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Data access levels
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Operational importance
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Regulatory exposure
High-risk vendors (e.g., cloud service providers or payment processors) should receive more frequent assessments.
2. Automate Risk Assessments
In 2025, automation is no longer a luxury. AI-powered platforms can:
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Auto-flag anomalies in vendor behavior
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Monitor compliance in real-time
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Provide continuous security scoring
This reduces the need for time-consuming manual audits and increases accuracy.
3. Integrate Risk Assessment with Procurement
Don't let TPRM be an afterthought. Ensure that third-party risk management is integrated into your supply chain management from the start:
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Risk-based questionnaires before onboarding
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Contract clauses mandating security and compliance measures
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SLAs tied to risk performance metrics
4. Collaborate with Cross-Functional Teams
Successful TPRM needs buy-in from multiple departments:
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Legal: For contract enforcement
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IT & Security: For technical assessments
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Procurement: For vendor selection
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Compliance: For aligning with regulations
Create a unified governance model for a streamlined process.
5. Continuous Monitoring, Not One-Time Checks
Annual reviews are outdated. Continuous monitoring tools offer real-time visibility into third-party performance and risks:
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Cyber risk scoring platforms
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Real-time alerts on security incidents
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Automated compliance tracking
Case Study: How a Global Manufacturer Strengthened TPRM
Company: A leading European automotive manufacturer
Challenge: Data breach via a third-party software provider
Solution:
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Implemented AI-based risk scoring
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Integrated assessment into supply chain contracts
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Switched from annual audits to continuous monitoring
Result:
Within 6 months, the company reduced third-party-related incidents by 47% and improved audit readiness.
Key Stats for 2025
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78% of organizations list third-party cyber risks as a top 3 concern (Ponemon Institute)
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58% of vendors fail to meet at least one compliance requirement during audits
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Organizations using automation in TPRM see a 30% faster incident response time
Spotlight: 2nd Annual Supply Chain Risk and Resilience Forum 2025
Location: Amsterdam, Netherlands
Date: May 6th–7th, 2025
Theme: Managing Uncertainty, Building Resilient Supply Chains
This year’s Supply Chain Management Forum is laser-focused on:
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Enhancing supply chain visibility
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Building end-to-end risk resilience
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Implementing robust third-party risk management practices
Why Attend?
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Hear from experts from companies like Nestlé, DHL, and Siemens
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Participate in interactive workshops and simulation labs
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Learn how to use AI, blockchain, and predictive analytics in risk assessment
Sessions Not to Miss
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“AI in Third-Party Risk Management: 2025 and Beyond”
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“Vendor Breach Response Simulations”
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“Integrated Risk Mapping for Global Supply Chains”
The forum serves as a live knowledge hub where professionals share real-world TPRM success stories and actionable insights.
FAQs
Q1: How often should third-party risk assessments be conducted in 2025?
A: For high-risk vendors, real-time or quarterly assessments are ideal. Low-risk vendors can be reviewed annually with continuous monitoring in place.
Q2: What’s the role of AI in modern TPRM?
A: AI helps in identifying patterns, predicting potential risks, and automating manual processes like risk scoring and compliance tracking.
Q3: Is attending a Supply Chain Management Forum worth it for TPRM professionals?
A: Absolutely. Forums like the 2nd Annual Supply Chain Risk and Resilience Forum offer exposure to the latest tools, trends, and strategies in both third-party risk management and supply chain management.
Final Thoughts
In 2025, effective third-party risk assessment isn’t about checking a compliance box—it’s about protecting your reputation, data, and operations. By adopting proactive strategies like vendor segmentation, automation, and continuous monitoring, businesses can stay ahead of emerging threats.
Don’t miss the opportunity to upgrade your strategy—the Supply Chain Risk and Resilience Forum is the perfect place to learn, connect, and lead in the evolving landscape of third-party risk management.