Ongoing vendor monitoring is a critical component of Third‑Party Risk Management (TPRM). While initial due diligence and contracting establish a baseline, continuous monitoring ensures that vendors remain compliant, secure, and aligned with organizational goals. This white paper outlines best practices for building a proactive monitoring program that reduces operational risk, protects sensitive data, and strengthens vendor relationships.
Key strategies include defining inherent and residual risk classifications, scheduling assessments based on vendor risk tiers, and incorporating subject matter experts for periodic reviews. Organizations should track risk‑changing events such as mergers, regulatory updates, financial health shifts, and cybersecurity ratings. Leveraging external intelligence sources—such as identity, ESG, financial, and cyber ratings—adds depth to monitoring and provides real‑time visibility into vendor performance.
The paper also emphasizes reducing vendor fatigue through streamlined questionnaires, automation, and documentation management. ROI‑generating activities like SLA reviews, service performance tracking, and on‑site control assessments help maximize program efficiency. By adopting these practices, companies can move from reactive to proactive risk management, identify issues early, and make informed decisions that safeguard operations.
With a structured workflow, balanced assessment schedules, and integration of expert intelligence, organizations can achieve a world‑class vendor monitoring program. The result is stronger compliance, improved resilience, and enhanced trust across the extended enterprise.
