Leveraging technology in third party risk management
Abstract
In today’s increasingly interconnected and digital business environment, third party risk management (TPRM) has become a crucial component of enterprise risk strategies. The expansion of outsourced services, strategic partnerships and extended supply chains has increased reliance on third parties for essential business functions. While this reliance enhances operational capabilities, it simultaneously introduces significant exposure to data breaches, regulatory non-compliance, reputational damage and operational disruption. Traditional TPRM methods, often manual, reactive and inefficient, struggle to keep pace with the scale and complexity of today’s third party ecosystems. Recent events, including cyberattacks, supply chain disruptions, and evolving regulatory landscapes, have underscored the need for robust frameworks and scalable solutions. This paper examines how technology is revolutionising TPRM by offering integrated risk management platforms, automation, artificial intelligence and advanced analytics. These tools provide organisations with greater visibility, efficiency and agility in identifying, assessing and mitigating third party risks. Recent studies indicate that the number of third party relationships is rising, with over 60 per cent of organisations managing more than 1,000 third parties, accompanied by a surge in third party data breaches and emerging threats.1 Despite heightened regulatory scrutiny, many organisations still lack effective oversight of these diverse risk domains. By leveraging technology, organisations can overcome the limitations of manual, siloed approaches and develop resilient, proactive TPRM programmes. The adoption of digital solutions not only enhances risk mitigation and compliance but also strengthens strategic decision making and supports business continuity in an unpredictable global environment. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Vrushali Lakhpati is an accomplished business and risk transformation leader with more than 15 years of experience in the financial services industry. As the head of the Global Third Party Program at AmTrust Financial Services, she leads strategic initiatives to enhance the third party risk management (TPRM) program and ensure its compliance with global regulatory standards. Vrushali’s broad experience includes maturing enterprise-wide programs, including TPRM, cybersecurity risk, compliance and data privacy. She specialises in developing and implementing comprehensive risk frameworks, governance structures, operational models and global policies. She focuses on building robust processes for risk management, due diligence and data analytics utilising advanced TPRM tools to automate the end-to-end risk management life cycle. Her collaborative approach includes working closely with information security professionals to develop innovative strategies that respond to the evolving risks associated with artificial intelligence, cyber threats and information security. Prior to joining AmTrust, Vrushali spent nearly ten years with Big 4 consulting firms, where she developed cybersecurity and TPRM solutions for clients in finance, healthcare, technology and retail sectors, consistently contributing to business growth and long-term value. She holds certifications as a Project Management Professional and Amazon Web Services Cloud Practitioner, complemented by an MBA and a Bachelor of Engineering in computer technology.
