Navigating Cyber Risk and Third-Party Risk Management: A Strategic Guide with Frameworks and Tools

Executive Summary

In an era of escalating cyber threats and increasing regulatory scrutiny, effective Cyber Risk Management and Third-Party Risk Management (TPRM) are critical for organizational resilience. This blog provides a comprehensive guide to building robust, collaborative TPRM programs by integrating evidence-based risk management, standardized frameworks, and cutting-edge software tools. Key strategies include tailoring solutions to organizational contexts, quantifying risks in financial terms, and leveraging AI and frameworks like NIST 800-161, ISO 27036, and FAIR for scalable, defensible programs. Leading tools such as UpGuard, OneTrust, Prevalent, ProcessUnity, and SecurityScorecard streamline workflows, enhance collaboration, and ensure continuous monitoring. By adopting these approaches, organizations can transform TPRM into a strategic asset, aligning cybersecurity with business objectives and regulatory expectations.

The Holistic Nature of Cyber Risk Decisions

Cybersecurity extends beyond technical solutions—it’s about embedding security into the core of an organization. Effective risk management requires a comprehensive approach tailored to an enterprise’s unique context.

Securing critical information assets isn’t just about deploying technology. As industry experts emphasize, relying solely on technical fixes overlooks broader organizational dynamics. Cyber risks often exist in shades of grey, demanding nuanced, risk-based decisions rather than one-size-fits-all solutions.

Guidance must align with an organization’s culture, ethics, and structure. Generic recommendations are hard to implement and often ineffective; tailored strategies ensure lasting impact. Building maturity in cyber risk understanding is a challenge for all organizations, but an evidence-based approach is key to confronting threats with clarity.

The regulatory landscape is also tightening. Understanding regulators’ perspectives enables organizations to craft proportionate responses that meet expectations efficiently, turning compliance into a strategic advantage.

Mastering Third-Party Risk Management: A Collaborative Effort

TPRM is a dynamic discipline requiring cross-functional collaboration. It’s not confined to IT but spans multiple departments, demanding coordinated efforts to manage third-party risks effectively.

Start by defining clear roles and responsibilities across departments to ensure accountability and avoid gaps. Breaking down silos is critical—aligning workflows and centralizing risk data creates a unified view for better decision-making.

Coordination challenges are common in TPRM, but they can be addressed with deliberate strategies. Technology and AI play a pivotal role, enabling continuous, cross-domain monitoring. A robust TPRM program supports the entire lifecycle—from vendor screening and intake to ongoing assessment and remediation.

Third-party risks often intersect with other domains, such as:

• Third-Party Risk: Involves screening, monitoring the risk universe, inventorying assets and vendors, and assessing risks.

• IT Risk: Focuses on remediation, tracking assets, and evaluating controls.

• Privacy Risk: Includes scanning for personally identifiable information (PII), identifying gaps, and conducting impact assessments.

• AI Risk: Covers defining use cases, assessing risks, and inventorying models and datasets.

Integrating these areas ensures a comprehensive TPRM framework that’s proactive and efficient.

Current TPRM Frameworks for Structured Risk Management

To create an effective and collaborative TPRM process, organizations can leverage established frameworks that provide structured guidance and best practices. Here are some of the most widely adopted TPRM frameworks in 2025, designed to address various risk domains and ensure compliance:

• Shared Assessments TPRM Framework: This framework offers a comprehensive set of best practices for building and maturing TPRM programs. It covers the entire vendor risk management lifecycle, from due diligence to ongoing monitoring, and includes standardized controls divided into fundamentals (introduction, basics, buy-in, governance) and processes (e.g., outsourcing analysis, due diligence). It’s particularly useful for organizations starting their TPRM journey, though it requires a membership fee. The Shared Assessments Standardized Information Gathering (SIG) Questionnaire complements this framework, enabling pre-mapped risk assessments aligned with standards like ISO 27001, GDPR, and PCI DSS.

• NIST 800-161 (Supply Chain Risk Management): Designed initially for U.S. federal entities but widely applicable to private organizations, NIST 800-161 provides guidance for managing supply chain risks, which overlap significantly with TPRM. It organizes the process into four phases—frame, assess, respond, and recover—and includes 19 control families, such as awareness training and system acquisition. This framework is ideal for organizations with complex supply chains seeking a robust foundation for TPRM.

• NIST Cybersecurity Framework (CSF) 2.0: While not exclusively a TPRM framework, NIST CSF 2.0 is invaluable for designing vendor risk assessment questionnaires and ensuring cybersecurity maturity. It provides a library of best practices that serve as a common reference for assessing third-party controls, making it easier to align with industry standards.

• ISO 27036: Focused on information security in supplier relationships, ISO 27036 complements TPRM programs by providing guidelines for assessing and managing cybersecurity risks with third parties. It’s particularly useful for organizations aligning with ISO 27001 standards.

These frameworks provide a roadmap for organizations to standardize processes, ensure regulatory compliance, and address risks like cybersecurity, data privacy, and ESG (Environmental, Social, and Governance). When choosing a framework, consider your organization’s risk landscape, industry requirements, and integration with existing workflows.

Top TPRM Software Tools for Collaborative Risk Management

In 2025, TPRM software tools are critical for automating processes, enhancing collaboration, and ensuring continuous monitoring. Below are some of the leading TPRM tools that support effective and collaborative risk management, based on their ability to streamline workflows, integrate with frameworks, and provide actionable insights:

1. UpGuard

   • Best For: IT security teams focused on data protection and cybersecurity.

   • Key Features: Automated vendor security assessments, real-time security ratings (0-950 scale), continuous risk monitoring, and integration with productivity tools. UpGuard excels in attack surface scanning and evidence gathering, supporting compliance with GDPR, ISO 27001, and PCI DSS. Its security ratings assess risks across network security, phishing, malware, and more, making it ideal for organizations prioritizing cyber risk.

   • Collaboration Benefits: Centralized risk data and customizable questionnaires enable cross-departmental visibility and streamlined vendor onboarding.

2. OneTrust Vendorpedia

   • Best For: Organizations needing streamlined compliance reporting and data processing.

   • Key Features: Automated workflows for vendor onboarding, risk assessment, and monitoring; pre-built templates for GDPR, HIPAA, and ISO 27001 compliance; and AI-driven risk analysis. OneTrust centralizes third-party inventories and tracks risk exposure across ecosystems.

   • Collaboration Benefits: Integrates with existing systems like ServiceNow and Jira, fostering cross-functional collaboration through shared dashboards and automated reporting.

3. Prevalent

   • Best For: Companies seeking comprehensive post-contract due diligence and inherent risk scoring.

   • Key Features: Auto-inherent risk scores, continuous monitoring, vendor intelligence networks, and regulatory compliance mapping (e.g., HIPAA, GDPR). Prevalent simplifies vendor onboarding and provides real-time risk reports.

   • Collaboration Benefits: Offers professional management services and a user-friendly platform to coordinate efforts across risk, procurement, and compliance teams.

4. ProcessUnity

   • Best For: Procurement directors managing large vendor portfolios.

   • Key Features: Global risk exchange, AI-driven tools, automated evidence collection, and customizable workflows. ProcessUnity supports the end-to-end TPRM lifecycle and integrates with major GRC platforms.

   • Collaboration Benefits: Its cloud-native platform and centralized dashboards enable seamless communication and insight sharing across departments.

5. SecurityScorecard

   • Best For: Organizations prioritizing cybersecurity risk detection.

   • Key Features: Real-time security ratings, peer benchmarking, automated onboarding assessments, and integration with GRC platforms. SecurityScorecard’s data-driven approach analyzes network security, malware, and compliance risks.

   • Collaboration Benefits: Intuitive dashboards and visual analytics make it easy for non-technical stakeholders to understand and act on vendor risks.

These tools enhance collaboration by offering centralized platforms, automated workflows, and real-time reporting, enabling teams to align on risk priorities and mitigation strategies. When selecting a tool, prioritize user-friendly interfaces, scalability, integration capabilities, and alignment with frameworks like NIST or ISO 27001.

Quantifying Risks for Business-Relevant Decisions

Making cyber risks relatable to non-technical stakeholders is a common challenge. Shifting from subjective scores to financial quantification bridges this gap, making risks actionable and relevant.

Instead of vague high-medium-low ratings, quantify third-party risks in financial terms. This approach resonates with executives, fostering informed decisions aligned with business goals. It’s a simple yet powerful strategy: Translate technical risks into dollars to engage all stakeholders.

The concept of a “cyber risk singularity” envisions a unified system to autonomously quantify, prioritize, and manage risks across third parties, enterprises, and AI. Leveraging frameworks like FAIR (Factor Analysis of Information Risk), organizations can automate and scale TPRM programs, integrating quantification for efficiency and defensibility.

Proven Strategies and Best Practices for TPRM Optimization

Practical steps, combined with the right frameworks and tools, can significantly enhance TPRM efforts:

• Leverage Vendor Audit Reports: Use standardized assessments and predictive analytics based on audit data to save time and resources while maintaining thoroughness. Tools like UpGuard and OneTrust streamline this process with automated evidence collection.

• Design Intentional Workflows: Create assessment processes that promote insight sharing and aligned decision-making, focusing on the “Five Rights”: delivering the right information to the right person, in the right format, via the right channel, at the right time. ProcessUnity and Prevalent excel in customizable workflows.

• Implement Continuous Monitoring: Move beyond one-time assessments with ongoing oversight, combining “outside-in” methods (e.g., questionnaires) with “inside-out” internal actions. SecurityScorecard and UpGuard provide real-time monitoring and alerts.

• Prioritize Based on Risk: Focus efforts on high-impact threats to allocate resources efficiently, guided by frameworks like NIST 800-161.

• Drive Actionable Mitigations: Target specific risks like ransomware, DDoS attacks, and data breaches with tailored strategies, supported by tools like Prevalent and OneTrust.

These practices, underpinned by robust frameworks and software, transform TPRM into a strategic asset rather than a compliance burden.

Harnessing AI and Open Standards for Future-Proof Security

AI is redefining cyber risk management by automating complex processes, improving accuracy, and accelerating response times. Agentic AI, as used in tools like OneTrust and ProcessUnity, enhances risk assessment and mitigation.

Open, automated risk standards like FAIR, FAIR-CAM, FAIR-MAM, and MITRE ATT&CK provide transparent, quantifiable frameworks. Adopting these standards, as supported by tools like UpGuard and SecurityScorecard, ensures programs are defensible, scalable, and aligned with industry best practices in a regulated world.

Conclusion

Cyber risk management and TPRM are critical to safeguarding organizations in a complex, interconnected world. By adopting a holistic approach—integrating tailored strategies, frameworks like Shared Assessments and NIST 800-161, and advanced tools like UpGuard, OneTrust, Prevalent, ProcessUnity, and SecurityScorecard—organizations can build collaborative, scalable, and resilient cybersecurity programs. Quantifying risks in financial terms and leveraging AI and open standards further enhances decision-making and regulatory compliance. These practices not only mitigate threats like ransomware and data breaches but also align cybersecurity with business objectives. Start implementing these strategies today to stay secure, compliant, and ahead of evolving risks.