Every business knows that third-party risk management tools are pivotal in safeguarding an organisation against potential threats and vulnerabilities.
With many companies being interconnected, third-party risk applications ensure each organisation can stay updated with security risks and take steps to prevent them from occurring.
According to Statista, 34% of businesses experienced issues with their cybersecurity in 2023, with common problems being data breaches and cyber-attacks.
Simply sending a few emails is no longer enough to guarantee corporate compliance, but third-party risk management solutions ensure any organisation can implement processes that mitigate potential risks,
In this guide, we’ll reveal 12 excellent tools for third-party risk management and explore the pros and cons of each.
Key Takeaways
- Third-party risk management tools are essential if you work with suppliers, contractors and partners, as they ensure risk mitigation.
- There are plenty of third-party risk management applications to choose between, but some are designed for certain sectors.
- While these tools are highly beneficial, getting compliance support can help you define your goals and make risk management software work for your company’s unique needs.
What is a Third-Party Risk Management Tool?
Third-party risk management tools are valuable solutions for organisations that need to assess, monitor and mitigate any risks due to relationships with suppliers, partners and contractors.
These tools offer various features, including vendor assessments, risk identification and mitigation, real-time alerts, performance analysis and reporting, making it easier for businesses to monitor compliance through one convenient platform.
Third-party risk management software is sometimes referred to as vendor risk management software or supplier risk management, both subcategories of overall third-party risk identification and mitigation.
How Do I Select a Third-Party Risk Management Framework?
Working with third-party suppliers requires in-depth risk assessments to ensure compliance and prevent cybersecurity issues such as data breaches. Software solutions make automating various processes and managing your organisation’s needs easier than ever.
When choosing the right compliance framework, it’s essential to understand your industry’s regulatory guidelines, how you work with third parties, and your acceptable risk level.
The following platforms offer a range of features, and some cater to specific industries, making it easier to manage third-party relationships.
OneTrust – Prices start at $600 a month
As one of the most reputable providers of compliance management and privacy solutions, OneTrust always delivers. The company’s TPRM software is ideal for industries with significant compliance requirements and offers useful features.
From onboarding workflows and analytics to building workflow integrations, OneTrust helps companies remain compliant without the extra headaches.
Pros:
- AI features to speed up questionnaire completion.
- Easily integrates with other software solutions.
- Configurable workflows.
Cons:
- The risk mitigation features have some limitations.
- Lacks advanced features in terms of analytics.
Venminder – Between $115,000 and $135,000
If you’re looking for a software solution that prioritises support, Venminder surpasses all expectations. Managers and administrators can take advantage of simplified risk assessments, contract management features and questionnaires.
With superior quality end-manager onboarding and training, the company has accumulated a wealth of positive reviews.
Pros:
- Users have unlimited access to plans.
- Venminder is scalable for your business.
- Free resources, including guides and infographics.
Cons:
- The software is tailored for North American client bases.
- It lacks features for businesses that don’t operate in the financial sector.
Prevalent – No clear pricing information
As an IT consulting specialist, Prevalent helps businesses remain compliant and provides TPRM solutions. The software is full of features, including vendor risk assessment, risk scoring and offboarding, allowing companies to reduce costs.
The great thing about Prevalent is it goes beyond being a simple software package because users can also take advantage of dedicated customer support and managed services.
Pros:
- Professional management services available.
- Access to vendor intelligence networks and real-time risk reports.
- Simplified integrations
Cons:
- Some companies find the interface less intuitive than other solutions.
- Vendors have more control over customisation than customers.
ProcessUnity – Prices start at $15,000
ProcessUnity is a third-party risk management solution that enables businesses to conduct due diligence by assessing and monitoring business partners. The tool identifies potential risks and helps companies minimise them before they become security hazards.
With its automated evidence collection and assessment scoping features, ProcessUnity is renowned for its automation features, giving users a convenient platform to monitor compliance.
Pros:
- Reports for key stakeholders.
- Beginners don’t need to worry about having coding knowledge.
- Streamline the entire TPRM lifecycle.
Cons:
- The costs are high for smaller businesses.
- Questionnaires have limited features.
BitSight – Prices start at $20,000
If you’re familiar with the security ratings sector, you’ve probably heard of BitSight. The company offers a range of TPRM solutions, including daily security ratings and data-driven features such as vendor response validation.
However, this software stands out because it integrates with other platforms, including ProcessUnity, which gives users the best of both worlds.
Pros:
- Workflows are easy to customise.
- Automated features, including onboarding assessments.
- Data-driven solutions for vendor response.
Cons:
- Some people might find customer support less accessible.
- Limited data filtering features.
Aravo – No clear pricing information
Arovo is one of the oldest TPRM solutions, launched in 2000 to support supplier management. Today, the platform enables users to perform due diligence, automate risk assessments and streamline onboarding new vendors.
The main reason Aravo is so popular is its advanced customisation features, which make it easy to tailor the platform to your needs. The platform can grow and scale with your business needs, too.
Pros:
- Integrations and pre-configured applications simplify the setup.
- Users can choose from various unique features, including infosec requirements and anti-corruption.
- Companies can use the innovation exchange feature to create an interactive customer experience.
Cons:
- If you want to utilise special features, most come with extra costs.
- Aravo has a complex pricing model, and many businesses don’t know what they’ll pay.
Security Scorecard – From free plan to $1000 monthly
Most people have heard of Security Scorecard, and the world’s largest businesses use its third-party risk-management software. With patented rating technology, the solution offers superior automation features and helps organisations identify cybersecurity issues.
Security Scorecard stands out because of its dynamic customer support, intuitive dashboard and high-quality visuals.
Pros:
- Supreme visualisation features.
- Users can try a free version to see if the software fits their needs.
- Set up rule-based cybersecurity responses.
Cons:
- The software is best for detection but lacks mitigation features.
- Large businesses or those with unique needs might find the reporting features quite limited.
Archer – Pricing is between $30,000 to $50,000
If your main priority is to isolate potential risks from third parties, Archer can help you safeguard your organisation. The software offers impressive features, including risk profile metrics, customisable controls, and risk indicators.
Most people immediately notice the visualisation tools, which make it easy to highlight potential risks through the use of Bowtie diagrams. People can also access Archer through their mobile or desktop.
Pros:
- Users can try out fourth-party management solutions.
- Ideal for industries with lots of regulations.
- Uses AI technology to enhance user experience.
Cons:
- Archer has recently dealt with many acquisitions, so the platform’s stability is somewhat questionable.
- While it can integrate with other apps, the software works best when you use it with Archer solutions.
Diligent – No clear pricing information
You might know Diligent as Galvanize, the name it used to go by. The platform delivers top-notch software solutions, including risk management, compliance and auditing, giving organisations the required comprehensive support.
The Diligent ThirdPartyBond platform can also automate onboarding tasks and offer tracked service level agreements (SLAs). You can also use Diligent to provide insightful reports for senior leadership and enjoy seamless integrations.
Pros:
- Create reports by KRIs and KPIs.
- Adaptive risk scoring and vendor surveys.
- Contract management and SLA performance monitoring.
Cons:
- Some features are expensive – especially for large organisations.
- The platform isn’t very user-friendly for people unfamiliar with coding.
Panorays – Enterprise prices start at £2500 per supplier
Panorays is a cutting-edge cybersecurity solution with automated capabilities for effectively managing and remediating third-party risks. Dynamic questionnaires assess current suppliers with comprehensive evaluations of attack surfaces and enhance clients’ understanding of potential risks.
Panorays garners top-notch reviews and ratings for its seamless deployment and onboarding processes. Its modern, intuitive user interface and dedicated customer service stand out the most.
Pros:
- Simple automation features that beginners can use.
- Top customer support ratings.
- The platform is continuously growing and adapting to user needs.
Cons:
- The reports lack some self-service features.
- Limited integration capabilities.
Whistic – No clear pricing information
Whistic is a dynamic solution for businesses wanting to demonstrate enhanced security. The platform has an assessment feature that allows you to share security risk information and evaluate various Whistic profiles.
The features ensure vendors don’t have to fill in customer questionnaires, saving time. With its automated re-assessments, Whistic provides information that is up-to-date and accurate.
Pros:
- The Whistic data catalogue has information on over 35,000 companies.
- Choose from a range of questionnaire templates.
- Proactive customer support teams.
Cons:
- The platform lacks advanced customisation options.
- Few integrations are available.
Logic Manager – No clear pricing information
As one of the leading third-party vendor management platforms, Logic Manager enables users to conduct quantitative risk assessment research and reporting capabilities to present findings to senior stakeholders.
This platform’s key feature is the ability to customise vendor questionnaires to each industry, automating assessments and highlighting frequently occurring risks with vendors. Overall, it’s an excellent solution for all your risk management needs.
Pros:
- Create in-depth risk assessments easily.
- Advanced reporting tools.
- Customisable questionnaire features.
Cons:
- The platform can be challenging for new users.
- Some alternative risk management solutions offer more customisation.
The Next Steps
While vendor risk management software plays a vital role in assessment and due diligence, it’s still essential to understand your organisation’s needs and the guidelines it must adhere to.
Developing a compliance framework can help you identify the right risk management tools to serve your organisation’s immediate – and future requirements.
If you’d like to outsource compliance and gain insights about your current practices, Captain Compliance offers a fresh set of eyes and identifies any gaps in your business.
Our expert compliance solutions ensure you have complete transparency and can plan effectively for the future.
FAQs
Why is third-party risk management important?
Many businesses rely on third parties to deliver products and services, but issues with these vendors can impact your organisation’s reputation.
By implementing a third-party risk management framework, you can protect your business and ensure compliance.
What are the key features of third-party risk management tools?
Third-party risk management applications have numerous features, but it depends on the platform you choose. Standard features include risk assessment, compliance monitoring, due diligence, incident tracking, vendor profiling, and reporting capabilities.
They also utilise automation, data analytics, and AI, enabling organisations to streamline risk assessment processes.
How can third-party risk management tools help with compliance?
Manual compliance monitoring requires a lot of time and personnel, but risk management solutions automate various processes and facilitate data collection.
Organisations using them can ensure they adhere to compliance requirements and avoid potential legal issues.
Are third-party risk management tools suitable for all industries?
In most cases, yes. Many third-party risk management solutions are customisable for various industries and compliance rules. However, some are designed to cater to a specific industry, so check before investing in one.
Is there a regulatory framework governing third-party risk management?
Yes, regulatory bodies have guidelines to ensure proper third-party risk management. This includes Europe’s GDPR and the Financial Conduct Authority. Risk management software ensures organisations comply with the regulations in place.