Clocks Fall Back, But TPRM Marches Forward: Key Takeaways from Recent 3VRM Events

British Summer Time has come to an end once again. While some might argue it never really felt like summer, the annual ritual of changing the clocks reminds us that time marches on - and so does Third-Party Risk Management (TPRM). Before we dive into the festive season, the 3VRM team has been busy hosting and presenting at events in Manchester, London, and the Isle of Man, exploring some of the biggest trends in TPRM.?

If you couldn't join us in person, here’s a quick summary of our top insights for staying ahead in the TPRM game:

1. AI is Everywhere… and Nowhere (Yet)

Across industries, everyone is talking about artificial intelligence, with TPRM being no exception. While AI is currently in a hype cycle, very few businesses are actively integrating it into their TPRM processes.

Concerns about AI’s risk potential are prevalent, and many are cautiously weighing the difference between hype and genuine, effective outcomes. We’re seeing initial use cases emerging, but the TPRM world is still on the lookout for AI applications that genuinely solve existing problems.

Our take? AI has a lot of potential in TPRM, from automating risk assessments to enhancing predictive analytics. But businesses need to proceed with caution, ensuring they have a strong understanding of AI’s limitations, the potential risks, and the cost of implementation versus the benefits.

We advise companies to keep an eye on AI’s evolution in the TPRM space but avoid jumping in without a clear, practical application.

2. Budgets are Tightening, and ROI is a Must

"Do more with less" has become the new motto for senior leaders. With budget pressures increasing, companies are being challenged to maximise value in TPRM investments. Balancing cost management with effective risk reduction is essential, and there’s a growing emphasis on driving measurable returns on investment.?

In response, TPRM strategies are increasingly focusing on initiatives that offer clear value. Whether through process efficiency, enhanced data insights, or tech-driven assessments, demonstrating ROI in TPRM has become essential for securing future investment.

Leaders can benefit from considering hybrid approaches that incorporate technology with human expertise to ensure every penny spent is driving genuine risk management outcomes.

3. Risks are Increasing, and the Landscape is Challenging

More companies are outsourcing than ever before, and the increase in third-party relationships is accompanied by greater risk exposure. And it’s not just immediate vendors -Nth-party risks (risks from vendors’ vendors, or beyond) mean companies are often unaware of certain risks buried deep in their supply chains.

Add to this a growing number of malicious actors, and identifying potential exposure has become a significant challenge.

Complex data flows, evolving cyber threats, and even potential geopolitical instability mean that TPRM has become a strategic imperative.

As risk landscapes expand, businesses need thorough visibility and proactive management across their entire third-party network. Effective TPRM requires both robust frameworks and tools to identify and address risks not only from direct third parties but also from the extended ecosystem.

4. Regulatory Complexity is on the Rise

Global organisations face the challenge of complying with increasingly complex regulations, especially with new standards being introduced at an unprecedented rate. While these regulations may appear similar, slight differences create significant complications for companies operating in multiple regions.

Applying a consistent risk management approach across diverse regulatory environments has become more difficult and resource-intensive.

For businesses looking to manage compliance efficiently, this demands a robust TPRM framework adaptable to each market’s regulatory specifics.

Partnering with TPRM experts can be essential for companies looking to stay agile in the face of shifting requirements and enforcement standards. Tailoring compliance strategies to meet both local and international regulations can help streamline risk management processes and prevent costly compliance breaches.

5. Data is King in TPRM

Whether you’re using a dedicated TPRM SaaS tool, a broader GRC platform, or even just a complex spreadsheet system, access to accurate, relevant data is non-negotiable. The effectiveness of a TPRM program depends on the quality of data flowing through it - poor data quality can undermine risk assessments, skew compliance, and lead to incorrect strategic decisions.

Building out TPRM technology without first addressing data quality issues is like building an extension onto a house with a leaky roof.

For businesses investing in TPRM technology, it’s critical to establish a solid data governance framework that ensures data accuracy, integrity, and accessibility.

Companies that prioritise data health will be better equipped to extract meaningful insights, make informed decisions, and enhance risk management outcomes.

6. Whiskey Makes Everything Better

Let’s not forget the most popular takeaway from our recent event on October 17th! Whiskey tasting was, unsurprisingly, a hit among attendees. Sometimes, a bit of fun and networking over a shared experience can make all the difference. It was a fantastic opportunity to connect, relax, and discuss the latest in TPRM in a more informal setting.

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If these trends resonate with you and you’d like to explore them further, reach out to the 3VRM team for a deeper discussion. We’re also happy to keep you informed about our future events - simply connect with us here or email us at [email protected] to join our mailing list.

In the ever-evolving world of TPRM, don’t let the changing seasons slow you down. The future of third-party risk is here, and it’s moving fast. Let’s march forward together!