Verdantix Buyer’s Guide For Third-Party Risk Management Software: Mastering TPRM Selection In An Evolving Market

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Verdantix Buyer’s Guide For Third-Party Risk Management Software: Mastering TPRM Selection In An Evolving Market

In an era where businesses are rapidly transitioning from reactive compliance measures to proactive, strategic risk management, the need for an integrated third-party risk management (TPRM) solution has never been more critical. According to the Verdantix 2023 global corporate risk management survey, 35% of respondents have plans to increase spending on such solutions over the next two years, earmarking significant investments and making commitments to more comprehensive and effective risk management strategies.

To help firms maximize the benefits of their third-party risk management initiatives, Verdantix has released the Buyer’s Guide: Third-Party Risk Management Software (2024). Compiled from research conducted over the past three months, the report features profiles of 18 prominent vendors in the space, drawing on data gathered via detailed questionnaires and product demonstrations. The guide also offers insights into the third-party risk management vendor landscape, buyer requirements and key criteria that buyers should consider to make an informed selection.  

Critical considerations for prospective buyers

For those in the throes of selecting a third-party risk management software solution, the report underscores several key considerations: 

  • Interoperability with existing technology portfolios.
    The ability to integrate third-party risk management software with existing or legacy risk management and business software lowers change management barriers and demonstrates value across the entire asset management software portfolio. Third-party risk management specialists such as Archer, LogicGate and ServiceNow offer a platform architecture that enables integration with third-party risk data providers and with existing enterprise solutions such as enterprise risk management (ERM), governance, risk and compliance (GRC) and risk management information system (RMIS) tools.

  • Expertise to support industrial standards and upcoming regulations.
    Upcoming regulations will require firms to operationalize policies, strategies and objectives related to optimizing risk management, sustainability and cyber security. Prospective buyers should ensure that shortlisted vendors have the capabilities to bring together relevant financial and non-financial elements, to meet compliance and auditability requirements. Venminder, for instance, provides templates and assessments aligned with various regulations and standards, such as NIST (the National Institute of Standards and Technology) and SIG (Standardized Information Gathering), to ensure compliance across multiple sectors.

  • Services for implementation, training and post-deployment support.
    Third-party risk management providers are increasingly offering an array of services that blend their proprietary consulting expertise with strategic alliances with external service agencies, ensuring comprehensive support throughout both the implementation phase and the subsequent operational stages. Buyers should assess the service offerings of each of the vendors in the Buyer’s Guide, in order to leverage this support throughout their third-party risk management digital maturity journeys.

The future landscape of third-party risk management software

Verdantix is anticipating accelerated product development and innovation in the third-party risk management software market, driven by increasing corporate needs to embed comprehensive risk practices throughout their third-party ecosystems, enhance operational efficiencies and demonstrate competitive differentiation. This evolution underscores the importance of selecting a software vendor that not only meets current requirements but is equipped to adapt to future challenges. For a deep-dive into how to navigate the third-party risk management software market, see the Verdantix Buyer’s Guide: Third-Party Risk Management Software (2024) – and attend the Verdantix Invisible Frontiers: Managing Third-party Risks In A Connected World webinar. For further insights into risk management services and technologies, please visit the Verdantix Risk Management research portal.

Industry Analyst

Christine is an Industry Analyst in the Verdantix Risk Management practice. Her current research agenda focuses on reputational risk, third-party risk, ESG risk, GRC solutions and regulatory change. Prior to joining Verdantix, Christine worked at Gartner, where she specialized in organizational design and change management. Christine holds a first-class BSc in Geography from the University of Birmingham.