Third-Party Risk

The terms

• Exit Strategy (Outsourcing)

  An outsourcing exit strategy is a documented plan for ending a supplier arrangement in an orderly way, by moving the service to another provider or back in house, with little or no disruption.

  Domain: Risk Management

• Fourth-Party Risk

  Fourth-party risk is the risk that comes from the subcontractors and suppliers a firm's own vendors rely on, with whom the firm has no contract and often little visibility.

  Domain: Risk Management

• Outsourcing Risk

  Outsourcing risk is the risk of loss, disruption or regulatory breach that arises when an organisation hands a function or service to an outside provider but stays responsible for the result.

  Domain: Risk Management

• Supply Chain Risk

  Supply chain risk is the chance that disruption, failure or misconduct at any point in the network that makes and delivers goods and services interrupts supply, raises cost or harms the buyer's reputation.

  Domain: Risk Management

• Third-Party Risk

  Third-party risk is the risk of loss, disruption or compliance failure that comes from relying on an outside party, such as a supplier, contractor, agent or service provider, to deliver goods, services or access.

  Domain: Risk Management

• Third-Party Risk Management (TPRM)

  Third-party risk management is the set of policies and processes a firm uses to identify, assess, contract with, monitor and exit external suppliers so that the risks they bring stay within acceptable limits.

  Domain: Risk Management

• Vendor Due Diligence

  Vendor due diligence is the review of a prospective supplier's capability, financial strength, controls, compliance record and ethics before a contract is signed, to decide whether the risk is acceptable.

  Domain: Risk Management