Blog  How to Build a Robust Third-Party Risk Management Strategy in 2025

Third-party vulnerabilities caused 35.5% of data breaches in 2024. This figure reveals the risks companies face when working with vendors and supply chain partners. Each breach not only jeopardized sensitive data but also disrupted operations and led to significant regulatory penalties. 

To combat these growing threats, businesses must prioritize third-party risk management (TPRM). TPRM focuses on identifying, assessing, and reducing risks tied to third-party relationships. As dependence on external services grows in 2025, the importance of robust vendor risk management becomes undeniable. 

This article delivers a step-by-step guide to building an effective TPRM strategy. You’ll learn how to enhance vendor risk management, leverage advanced cybersecurity services, and ensure strict regulatory compliance. 

Why Third-Party Risk Management is Critical in 2025

The rising frequency of attacks on U.S. supply chains makes third-party risk management (TPRM) essential for protecting businesses and consumer data. Cybercriminals exploit vendor vulnerabilities to breach larger organizations, causing severe financial and reputational harm. 

Key examples emphasize this urgency (these are historical incidents but remain relevant lessons) 

• • Slim CD Breach: Hackers exploited unpatched systems at a payment processor, exposing the personal and financial information of 1.7 million customers. This breach caused fraudulent transactions and eroded consumer trust. 
  • Ticketmaster Breach: Hackers leveraged weaknesses in a third-party cloud service provider to access 560 million customer records, including emails and payment details. This data led to phishing attacks and financial fraud, sparking public backlash over the company’s oversight failures. 

These incients show how a single weak vendor system can trigger regulatory violations, operational disruptions, and heavy financial penalties. 

Regulatory frameworks like the California Consumer Privacy Act (CCPA) and international standards such as ISO 27001 push U.S. businesses to audit vendor practices, strengthen access controls, and fix vulnerabilities swiftly. 

Organizations must act decisively by continuously monitoring vendors and improving cybersecurity risk management strategies. Proactively addressing third-party cyber risks enables businesses to mitigate threats, maintain compliance, and protect their operations in a volatile digital world. 

Key Components of a Robust Third-Party Risk Management Strategy 

A robust third-party risk management strategy protects sensitive data and critical systems. The following components can help you build an effective risk management framework and strengthen vendor risk governance.

1. Risk Identification

• • • Identify all third parties that access sensitive data or critical systems. 
    • Categorize vendors into risk tiers (e.g., high-risk and low-risk) based on their access levels and potential business impact. 
    • Update vendor lists continually to ensure you capture new and emerging risks. 

 2. Vendor Cybersecurity Assessment

• • • Conduct regular cybersecurity assessments to evaluate vendor practices and detect vulnerabilities. 
    • Use standardized questionnaires or automated evaluation platforms to streamline assessments. 
    • Focus additional scrutiny on vendors with critical roles in your operations. 

 3. Compliance Monitoring

• • • Verify that vendors comply with industry standards like PCI DSS, NIST, or ISO 27001. 
    • Audit vendor processes regularly to confirm adherence to regulatory requirements. 
    • Address compliance issues immediately to reduce risks of fines or operational disruptions. 

 4. Incident Response Planning

• • • Create detailed protocols for managing vendor-related incidents, such as breaches. 
    • Assign specific responsibilities to internal teams and vendors to enable cohesive response efforts. 
    • Isolate compromised devices by immediately disconnecting affected systems to limit the spread of threats.  
    • Limit the spread and impact of the incident by shutting down access points, temporarily disabling compromised accounts or connections showcasing suspicious activity, etc. 
    • Establish rapid communication by informing stakeholders promptly to avoid mismanagement during critical moments. 

 5. Continuous Monitoring

• • • Use SIEM/SOAR, EDR/XDR, IDS/IPS, and other monitoring platforms to monitor activities in real-time. 
    • Centralize and maintain logs to quickly identify patterns or indicators of compromise. 
    • Respond to newly identified risks promptly and prevent them from escalating. 

Implementing these components strengthens your third-party vendor risk management strategy and enhances governance across external partnerships. 

Practical Steps to Implement Your TPRM Strategy 

Follow these steps to strengthen your risk management framework and improve third-party compliance management.

1. Conduct a Gap Analysis

Begin by thoroughly evaluating your current TPRM processes to uncover weaknesses and areas for improvement. This includes reviewing your vendor onboarding process, assessing cybersecurity risk assessments, and analyzing how well potential risks are monitored over time. 

• Example: If your current process evaluates vendors only at the onboarding stage, introduce periodic reviews to monitor changes in the vendor’s security posture, such as their ability to address new threats or comply with updated regulations. 
  • • Prioritize gaps that could pose the greatest threats to your business operations, such as vendors handling sensitive customer data or critical business assets. Develop a timeline to address these vulnerabilities strategically and efficiently. 

2. Leverage Advanced TPRM Software  

Implement advanced tools to automate and enhance your risk management capabilities. These platforms can reduce manual workloads, provide real-time insights, and ensure compliance across your vendor ecosystem. 

• Example: Adopt platforms that allow you to create tailored risk assessments for vendors, integrating metrics such as regulatory compliance scores, data encryption standards, and previous breach history. 
  • • Choose tools with continuous monitoring capabilities that alert your team when a vendor’s risk profile changes, enabling swift action to mitigate potential threats. Automation can also streamline due diligence processes, saving time during vendor assessments. 

3. Train Internal Teams

Equip your employees with the knowledge and skills to manage third-party risks effectively. This involves educating staff on compliance standards, vendor governance best practices, and how to identify warning signs of potential issues. 

• Example: Host quarterly workshops that simulate vendor-related breach scenarios to train employees on detection, escalation, and response protocols. This not only improves individual accountability but also ensures streamlined communication during real-world incidents. 
  • • Ensure team members are familiar with tools and reports generated by your TPRM software, so they can interpret insights and take actions confidently. Build a culture of proactive risk identification by encouraging employees to flag anomalies in vendor activities as part of their routine responsibilities. 

By following these practical steps, you can build a proactive TPRM strategy that safeguards your business from third-party risks while ensuring compliance and operational resilience. 

How TrustNet Can Help Strengthen Your TPRM Strategy 

TrustNet delivers comprehensive third-party risk management solutions tailored to address your enterprise’s unique needs. With proven methodologies and advanced tools, we simplify risk mitigation while enhancing vendor compliance. 

Expertise and Tailored Solutions 

• • TrustNet provides end-to-end solutions for building and refining your TPRM framework. 
  • We specialize in vendor cybersecurity assessments, compliance tracking, and real-time monitoring to ensure effective risk oversight at every stage. 
  • Our solutions are designed to align with both operational priorities and regulatory standards. 

GhostWatch and the Accelerator+ Approach 

At the core of our offerings is GhostWatch. GhostWatch delivers Managed Security and Compliance with automation, enabling organizations to streamline risk management processes. Coupled with our Accelerator+ approach, this ensures comprehensive support across three pillars: 

• • Advisory: Gain expert input to design and implement a robust TPRM strategy. 
  • Automation: Use GhostWatch to automate assessments, track compliance, and monitor third-party risks in real-time. 
  • Audits/Assessments: Identify vulnerabilities and increase readiness with in-depth vendor security evaluations. 

Seamless Consultation Services 

• • TrustNet’s experts are here to help you optimize your TPRM program with tailored strategies and actionable insights. 
  • Schedule a risk management consultation to secure your operations and address compliance needs. 
  • Book vendor risk consultation to identify gaps and enhance third-party governance.

With TrustNet’s GhostWatch and our Accelerator+ approach, you gain the tools and expertise needed to strengthen your risk management framework and stay ahead of emerging threats. 

Summary 

A strong third-party risk management strategy safeguards your business and ensures compliance. TrustNet identifies gaps, delivers tailored solutions, and provides cutting-edge tools like GhostWatch to help you manage vendor risks effectively. GhostWatch automates compliance, monitors risks in real-time, and strengthens security with ease.