9 Misconceptions About Third-Party Risk Management

This document addresses common misconceptions about third-party risk management (TPRM). It highlights nine key misunderstandings, including the belief that TPRM is only necessary for large companies, that compliance should be the main goal, and that longer vendor questionnaires lead to better security. It emphasizes that every organization should engage in third-party risk management, regardless of size, and that continuous monitoring is vital for keeping an up-to-date view of third-party cybersecurity. Additionally, it explains the importance of board involvement and the impact of cybersecurity ratings in identifying real-world risks. The article argues for a more effective, scalable approach to TPRM, incorporating tools like security ratings and continuous monitoring.
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