How Mature Organisations Actually Run
Third-Party Risk Management

A practical, step-by-step guide for security and risk leaders
responsible for vendor risk and oversight.

Based on real-world implementation across financial institutions.
Download the guide

Third-party risk is no longer theoretical

The data tells a clear story: third-party relationships are a primary attack vector and compliance concern for financial institutions.

62%

of organisations experienced a supply chain attack in 2024

30%

of supply chain incidents involve weaknesses in third-party systems

$4.35M

average cost of a supply chain breach

3.2x

of third-party security incidents stem from weak vendor security

These risks are rarely caused by a lack of policy, they stem from how Third-Party Risk Management is implemented and operated.

The execution gap in most TPRM programmes

Most organisations have a Third-Party Risk Management programme.
Far fewer can operate it consistently and cost effectively at scale.

Common points of failure include:

incomplete supplier visibility

Shadow IT and decentralised procurement create blind spots in the vendor ecosystem.

unclear risk tiering

Without consistent criteria, teams struggle to prioritise resources and focus efforts.

inconsistent due diligence

Assessments are applied unevenly, often depending on who is reviewing them.

limited ongoing monitoring

Supplier risk is checked once during onboarding, then rarely revisited.

weak executive reporting

Critical supplier risks are not summarised clearly for senior decision makers.

This guide focuses on fixing those execution gaps.

The core components of effective TPRM

Identifying and documenting all suppliers and supplier sourcing across the organisation
Defining and applying a practical supplier risk tiering model
Applying appropriate due diligence at each risk tier
Managing remediation and supplier-related incidents
Establishing ongoing monitoring and periodic re-assessment
Reporting supplier risk effectively to senior stakeholders

A practical operating model for third-party risk management

Phase 1: Onboarding & Implementation

01

Procurement Process Integration

Integrating third-party risk considerations into procurement and onboarding workflows to ensure risks are identified early and assessed consistently before contracts are signed.

02

Supplier Inventory & Risk Tiering

Establishing a complete supplier inventory and applying a clear risk tiering model to prioritise oversight based on criticality, data exposure and business impact.

03

Initial Risk Assessments

Performing proportionate risk assessments aligned to supplier tiering, combining questionnaires, evidence review and targeted assessments to build an accurate risk profile.

04

Risk Treatment & Remediation Planning

Defining clear remediation expectations, tracking actions and engaging suppliers to address identified risks in a structured and accountable way.

05

PRM Programme Setup

Establishing governance, metrics and reporting structures to support consistent decision-making, executive visibility and ongoing programme oversight.

Phase 2 focuses on maintaining control over third-party risk over time

It ensures supplier risk profiles remain accurate, emerging risks are identified early, and oversight remains defensible as organisations and supplier landscapes change.
Continuous Risk Monitoring

Continuously monitoring supplier risk signals to detect changes that may impact security, resilience or regulatory exposure.

Periodic Risk Re-Assessments

Re-assessing suppliers on a scheduled or event-driven basis to ensure risk assessments remain current as supplier activities, controls or risk profiles change.

Ongoing Remediation & Supplier Engagement

Managing remediation activity and engaging suppliers to ensure identified risks are addressed, tracked and verified over time.

Regulatory Compliance Tracking

Maintaining visibility of regulatory scope and supplier obligations to support audit readiness and ongoing compliance requirements.

Incident Response Support

Supporting coordinated response and investigation when supplier-related incidents occur, helping organisations understand impact and lessons learned.

Reporting & Executive Oversight

Providing clear, consistent reporting to support executive oversight, informed decision-making and ongoing governance.

Vendor Onboarding & Offboarding

Ensuring third-party risk considerations remain embedded as suppliers are onboarded, changed or exited over time.

Fourth-Party Monitoring

Maintaining visibility of downstream dependencies where fourth-party risk may impact critical third-party resilience.

This guide is designed for

Designed for CISOs, security leaders and risk professionals responsible for building, running or improving a Third-Party Risk Management programme.

Especially relevant if:

Your programme exists but feels fragile
Risk ownership is unclear
Reporting lacks confidence at exec or board level

How this guide is intended to be used

This guide reflects how Third-Party Risk Management is implemented in practice — across supplier onboarding, monitoring, incident response and executive reporting.

It is written to support decision-making and execution, not to sell software or frameworks.

Download the guide

Want to sanity-check your current TPRM approach?

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Logica Security is a UK based cybersecurity consultancy specialising in regulated and high-risk industries. We support organisations across cyber security, operational resilience and supplier risk.

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