Third-Party Risk Management

FAQ

Our Third-Party Risk Management program helps ensure vendors and partners meet our standards for security, compliance, and operational reliability.

This FAQ outlines how we assess, onboard, and manage third-party relationships to identify and mitigate potential risks.

Why Security Added at the End Always Fails?

Goal: Ensure risks introduced by external entities are systematically identified and mitigated.

Key Drivers:

Prevent data breaches and operational outages.
Ensure regulatory compliance.
Protect sensitive customer data.
Maintain operational resilience.

Beyond simple vendor management, a formal TPRM framework ensures that risks introduced by external entities—such as data breaches, operational outages, or regulatory non-compliance—are systematically identified and mitigated. For financial institutions, this is often a regulatory requirement to ensure operational resilience and protect sensitive customer data.

How do we manage risks once they are identified?

Goal: Take immediate, structured action once security or compliance gaps are revealed.

Key Actions:

Collaborate on Remediation: Work with the supplier to close security gaps.
Build Response Capabilities: Develop incident response plans for supply chain issues.
What does the due diligence process look like?

Goal: Apply depth of due diligence commensurate with the supplier's tier.

Assessment Tiers:

Tier 1: Requires the most rigorous assessment, often involving onsite audits and physical security assessments.
Tier 2 & 3: May focus on security questionnaires and checking requisite certifications to reveal the vendor's security posture.
Is TPRM a "one and done" exercise?

No. Ongoing monitoring is essential to an effective TPRM programme. This includes:

Key Points:

Threat Intelligence: Activating cyber risk monitoring to track real-time supplier risk shifts.
Fourth-Party Monitoring: Tracking dependencies on downstream vendors that may impact your critical third parties.
Periodic Refreshes: Engaging in trigger-based evidence updates and maintaining an up-to-date framework against new regulations
How do we manage risks once they are identified?

Once gaps are revealed, you must:

Key Actions:

Collaborate on Remediation: Work with the supplier to close security gaps.
Build Response Capabilities: Develop incident response plans specifically for supply chain security issues.

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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