Welcome to our latest exploration into the evolving landscape of Third-Party Risk Management (TPRM). The 2024 State of TPRM Report, brought to you by RiskRecon and The Cyentia Institute, delves deep into the current state and emerging trends of TPRM across various industries, offering a comprehensive look at how practices have shifted since our last report in 2020.
The past few years have seen dramatic changes in business and technology environments, prompting a significant evolution in how organizations manage the risks associated with third-party partnerships. This year’s report highlights the increasing integration of third-party risk management into broader enterprise risk frameworks, reflecting a more strategic and expansive approach to managing third-party risks—not just in cybersecurity but across a spectrum of operational and compliance concerns.
Key Findings from the 2024 State of TPRM Report:
- Growing Priority and Scope: 90% of survey respondents now consider TPRM as a growing priority for their organizations, up from 63% in 2020. Additionally, there is a clear trend towards TPRM programs assessing a wider range of non-cyber risks, with 89% of programs planning to do so within the next year.
- Increased Vendor Reliance and Risk: Organizations are increasingly reliant on a larger number of third parties, with 26% of respondents managing over 250 vendors—a significant increase from 13.5% in 2020. This has elevated the risk landscape, as more third parties mean potential vulnerabilities.
- Surge in Security Incidents: The rate of security incidents involving third parties has more than doubled since 2020, jumping from 9% to 23% of respondents reporting such breaches.
- Adoption of Technology Solutions: There is a notable increase in the use of technology solutions to manage TPRM efficiently. The usage of cybersecurity ratings services has surged from 42% in 2020 to 61% in 2023, reflecting a shift towards more scalable risk assessment methods.
With these significant findings in mind, it becomes clear just how impactful the 2024 State of Third-Party Risk Management analysis can be across various levels of an organization. Let’s explore who stands to gain the most from this research and how it can be applied to enhance strategic, compliance, and operational goals within diverse industries.
Who Benefits from This Research?
The 2024 State of TPRM Report is invaluable for anyone involved in managing or overseeing third-party relationships. This includes CISOs, risk managers, compliance officers, and procurement leaders. It’s also crucial for senior executives and board members who need to understand the risks associated with third parties to safeguard their organizations.
How This Research Helps:
- Better Decision-Making: The report offers insights that help leaders allocate resources wisely and prioritize their risk management efforts effectively.
- Stronger Security and Compliance: It provides information on current practices and effective strategies that organizations can use to enhance their defenses and meet regulatory demands.
- Improved Efficiency: The report highlights tools and technologies that can streamline TPRM processes, making them more efficient and less resource-intensive.
By leveraging these insights, stakeholders can enhance their understanding of third-party risks and adapt their strategies to manage these risks more effectively, ensuring their organizations remain secure and compliant.
Join us as we break down these findings and more from over 100 organizations that participated in this comprehensive study. We’ll explore how firms are scaling their third-party risk management capabilities to meet the needs of an increasingly complex and interconnected world. Whether you’re looking to bolster your existing TPRM program or seeking insights into the best practices emerging in the field, this report offers valuable perspectives to guide your journey towards a more secure and compliant operational landscape.
