The structure and reality of business today has changed. Traditional brick-and-mortar business is a thing of the past: physical buildings and conventional employees no longer define the organization. Instead, the modern organization is an interconnected web of relationships, interactions, and transactions that extend far beyond traditional business boundaries. Even the smallest organization can have dozens of relationships that they depend on for goods, services, processes, and transactions. In large organizations, this can expand to tens of thousands of third-party relationships with suppliers, vendors, partners, and service providers.

With businesses increasingly relying on a complex network of third-party relationships to thrive, the governance, risk management, and compliance (GRC) of third-party relationships become even more critical.

A manual and point-in-time approach to third-party risk intelligence compounds the problem and can lead to elevated risk exposure. It is time for organizations to step back and move from legacy practices, defined by manual processes and periodic assessments, to a third-party risk intelligence architecture that includes integrated full-spectrum real-time feeds of situational awareness that impacts the extended enterprise and operations.

In this Strategy Perspective, GRC2020 discusses how enterprises can achieve agility and resiliency in third-party performance.

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