Strategic Focus: Mitigating Reputational Risks In Third-Party Risk Management

The mitigation of reputational risks has grown into a strategic imperative for firms outsourcing to third parties. Globalization and growing complexities across supply lines have proven to be a double-edged sword for third-party risk management (TPRM): while value chains benefit from increased interconnectivity, third parties are now subject to vast networks of stakeholders, regulations and geopolitical pressures – each of which presents potentially unseen reputational risks. For effective mitigation across dynamic third-party networks, firms must prioritize strategic risk assessments, continuous monitoring and advanced due diligence practices to safeguard their reputations and maintain a strategic edge in the fallout from a damaging event.