7 Top Third-party Risk Management Software in 2024

According to a recent study, 62% of data breaches are attributed to vulnerabilities in third-party relationships. This highlights the importance of robust third-party risk management (TPRM) tools. As business relationships grow more complex, TPRM solutions have emerged as pivotal shields in fortifying businesses against risks associated with third-party associations.

In this blog, we will discuss the top third-party risk management software and how to choose the one to help you optimize your vendor relationships.

What is Risk Management software?

Risk Management software is a solution for organizations looking to evaluate, assess, and mitigate potential risks from engagements with vendors, suppliers, or business partners before initiating and throughout the partnership.

TPRM software aids in comprehensively evaluating the risk landscape, ensuring compliance, and implementing mitigation strategies, thereby fortifying an organization’s resilience against threats introduced by third-party associations.

The 7 best TPRM tools for your business

Navigating the intricate landscape of Third-Party Risk Management (TPRM) requires reliable and efficient tools. These tools offer comprehensive features to safeguard your vendor relationships and protect your organization from potential threats. Here are the top seven TPRM solutions ideal for fortifying your business against external risks.

1. Sprinto

Sprinto is a smart risk assessment software and compliance automation platform that empowers organizations to fortify their third-party risk management effortlessly. The platform addresses vendor risk management and offers a comprehensive suite of features that ensure effective third-party risk assessments.

Sprinto’s key focus on vendor risk management enables organizations to promptly detect, log, and mitigate potential risk, offering valuable insights for proactive threat notification. Automating security checks and conducting rigorous assessments streamlines security and compliance obligations. Sprinto supports various compliance frameworks, including SOC 2, ISO 27001, HIPAA, GDPR, PCI DSS, NIST, and more.

With pre-built security programs, continuous control monitoring, and automated evidence collection, Sprinto facilitates rapid and successful security audits for tech companies. This cloud-based solution caters to diverse industries, providing real-time security data monitoring for effective incident management.

Moreover, Sprinto boasts an intuitive real-time health dashboard that vividly presents the compliance and security status of your organization, empowering users with comprehensive insights into vendor risk profiles and third-party risk assessments. Overall, Sprinto is your proactive partner, ensuring robust vendor risk management, compliance adherence, and streamlined security protocols.

Key features

• Comprehensive risk library for qualitative and quantitative vendor assessments
• Built-in training modules for efficient risk management
• Automated log monitoring and auditing features
• Insightful and comprehensive audit-ready reports for auditors and stakeholders
• Compliance automation features to meet different regulatory frameworks
• Event and incident management capabilities and systematic escalations

Pros

• Real-time threat monitoring and real-time threat detection
• Intuitive interface with easily navigable features
• Automated evidence collection to prove compliance
• Seamless integration with different cloud setups
• Serves all industries and has great customer support

Cons

Built for cloud-based companies and not on-premise businesses

G2 rating: 4.8/10

2. MetricStream

MetricStream’s third-party risk management software provides a comprehensive and real-time overview of your vendor ecosystem. The platform seamlessly integrates various facets of third-party management, encompassing data collection, continuous monitoring, compliance adherence, risk mitigation, and vendor onboarding. 

Its automation streamlines end-to-end processes for information collection, onboarding, real-time monitoring, compliance assessments, and risk mitigation strategies. This integrated approach fosters effective third-party risk management and bolsters beneficial relationships with vendors.

Key features

• Simplifies third-party intake across departments through a user-friendly portal.
• AI-powered smart issue management for accelerated response and remediation.
• Features to determine third-party KPI scores.
• Segmentation of third and fourth parties assessments with pre-defined questionnaires. 

Pros

• Streamlined intake and request process
• Intuitive dashboards and reports
• Integration of trusted content sources for improved risk assessment

Cons

• Complex learning curve 
• Lacks basic functionalities like uploading (xls) into the platform. 

Also Check: Third-Party Risk Management Framework: Easy Guide

G2 rating: 3.5/10

 3. OneTrust

OneTrust Third-Party Risk Management (formerly Vendorpedia) solution aids in evaluating data transfers encompassing customer, employee, and vendor information to align with the expanding list of international regulations. The platform provides privacy impact assessments, data inventory mapping, remediation actions, and regular audits via an easily accessible web-based portal. Regarded as one of the leading cloud risk data management software solutions, it caters particularly well to compliance-oriented industries.

Key features

• Workflow integration builder to seamlessly integrate into your existing system.
• Unified third-party relationship inventory for better oversight.
• Dynamic questionnaires to gather specific and relevant information about vendors.
• Intelligent onboarding workflows to streamline the onboarding process and ensure comprehensive data collection.

Pros

• Strong integration with other OneTrust solutions and third-party data sources
• Offers a free trial
• Incorporates AI auto-completion technology for faster questionnaire completion
• Highly configurable workflows with intuitive logic

Cons

• Some limitations in risk mitigation features
• Limited advanced analytics and risk-scoring capabilities
• Potential for enhancement in native integrations

G2 rating: 4.5/10

Check out: How to get started with your ISO 27001 Risk Management Policy?

4. BitSight Third-Party Risk Management

BitSight presents robust Third-Party Risk Management solutions. Their Security Ratings Platform, driven by advanced algorithms and daily security assessments, empowers organizations to handle third-party risks effectively. BitSight seamlessly integrates with popular VRM tools such as ServiceNow and ProcessUnity, augmenting its TPRM capabilities.

Key features

• Automated onboarding for streamlined vendor onboarding processes.
• Data-driven validation of vendor responses, ensuring accuracy and reliability.
• Real-time reporting capabilities for immediate insights into risk profiles.
• Identification of fourth-party product usage for comprehensive risk evaluation.
• Customizable workflows allow prioritization of assessments based on specific needs.

Pros

• Seamless integration with various TPRM solutions
• Availability of free cyber security reports
• Customizable and comprehensive reporting

Cons:

• Limited peer community engagement
• Challenges in customer support accessibility
• Difficulty in data filtering and updating report results

G2 rating: 4.6/10

5. Diligent ThirdPartyBond

Diligent, formerly known as Galvanize, provides audit, risk, and compliance software solutions. Their ThirdPartyBond solution offers comprehensive features such as vendor onboarding, streamlined evidence collection, and insightful assessment surveys. ThirdPartyBond’s risk analysis software ensures continuous tracking of service level agreements (SLAs), regularly updates intelligence feeds, and generates comprehensive reports suitable for senior management review.

Key features

• Key Performance Indicator (KPI) and Key Risk Indicator (KRI) driven reports
• Monitoring SLA performance and robust contract management
• Centralized third-party inventory with bulk import functionality
• Risk-centric control assessments 
• Adaptive vendor surveys and advanced risk-scoring mechanisms

Pros

• Strong incorporation of risk analytics with advanced machine learning algorithms
• A unique offering of interactive storyboards featuring sophisticated data visualizations
• Built-in advanced analytics for predicting control failures

Cons

• Limited customization in the most recent version, impacting adaptability
• Pricing structure might pose challenges for teams requiring multiple out-of-the-box solutions
• Technical limitations in editing features, primarily done through scripting, which might be complex for non-technical users

G2 rating: 4.6/10

6. Venminder Third-Party Risk Management Software

Venminder is risk management software that offers comprehensive third-party risk management solutions. The platform delivers oversight, contract management frameworks, risk assessments, due diligence, SLA management, and vendor onboarding. Clients can access the Venminder Exchange to assess vendor security, SOC reports, contracts, financials, disaster recovery, and more.

Key features

• Issue and SLA management for tracking and resolution of vendor-related concerns.
• Point-in-time risk profile provides snapshot views of risk statuses at distinct moments.
• Automated, customizable questionnaires for a streamlined data collection process.
• Oversight management with vendor scorecard tracking for evaluation of vendor performance metrics.

Pros

• Extensive library of free learning resources
• Unlimited user access to all plans
• Scalable solution with a la carte services

Cons

• Limited international presence, mainly focuses on North American clients
• Historically focused on finance clients, potential limitations in other areas
• Primarily suitable for smaller businesses

G2 rating: 4.7/10

 7. Archer Third-Party Governance

Archer Third-Party Governance, previously part of RSA and now under private ownership, is a robust risk quantification software designed to aggregate risks and fortify organizations against disruptions. This risk analysis software offers tailored controls, risk metrics, and advanced visualization tools, ensuring comprehensive risk management.

Key features

• Customizable risk indicators for accurate risk assessment
• Quantitative and qualitative analysis methods
• Bowtie Diagrams and illustrative tools for risk and mitigation representation
• Customizable reporting and monitoring features
• Accessibility across desktop and mobile platforms for ease of use

Pros:

• Industry-targeted design tailored for highly regulated sectors.
• AI-powered assessment for swift third-party asset risk assessment.
• Comprehensive fourth-party risk management features

Cons

• Works most effectively when integrated with other Archer solutions.
• Pricing and licensing models are relatively intricate.
• Frequent changes in ownership raise uncertainties about long-term stability

G2 rating: 3.8/10

8. Resolver 

Resolver is an enterprise risk management software tool that helps businesses minimize security threats through continuous monitoring of risks that may impact business processes. This risk assessment software contextualizes risks and potential issues across compliance, audit, or threats and translates them into actionable business metrics. 

Key features:

• Custom risk management processes based on vendor relationships. 
• Automatically identifies and summarizes risks using analytics capabilities. 
• Advanced features like AI autofill auto-populate vendor questionnaires using a repository of previous answers. 
• Data leak detection system scanning for all vectors, records, databases, filebases, and more to protect PII, payment data, user credentials, and intellectual property. 
• Risk reporting dashboard analyzes trends, manage compliance programs, and track security health from a single platform.

Pros: 

• Clear, accurate, and measurable security rating of organizational risks
• Risk remediation workflows streamline the process of addressing vulnerabilities  
• Offers free trial to help users understand if it meets their business goals
• Offers various plans like basic, starter, professional, corporate, and enterprise 

Cons: 

• Supports a limited number of third-party integrations
• Some users may find the features complex and overwhelming

G2 rating: 4.4/10

9. LogicGate

LogicGate Risk Cloud is a cloud risk data management software solution that adds efficiency through advanced automation capabilities. It provides real-time visibility into the risk landscape to facilitate enhanced decision-making using data-driven insights from a single, flexible dashboard.

Key features: 

• Centralises vendor data, controls, and risks in a single console to eliminate repetitive tasks like onboarding and risk evaluation
• OpenAI integration with popular tools like Jira and Slack helps to identify and mitigate critical vendor risks
•  Quantifies risks using techniques like loss exposure, loss magnitude, and event loss calculation. 
• Run multiple scenario analysis to compare risk impact for changing controls, risk factors, and operations.
• Launch, scale, and manage a robust risk management program using out of the box questionnaires aligned with standards like ISO 27001. 
• The custom and highly configurable drag and drop interface and graph database allows teams to align assessments, workflows, and controls to evolving needs

Pros:

• Highly custom interface and flexibility that fits any industry or business type
• Highly responsive support team helps users succeed and improve the overall business experience
• Helps to create data structures and workflows as per the business requirements and mody any aspects of it

Cons

• The controls malfunction at times, triggering before due dates and failing to notify at times
• Steep learning curve creates the need for user training 

G2 rating: 4.8/10

As a bonus, download the “Third-Party Risk Management Policy” to protect your business. This important document outlines how to manage third-party risks and secure vital information.

Important features to look for in TPRM software

Choosing a suitable third-party risk management software with significant features is crucial in ensuring effective vendor risk assessment, maintaining compliance, and the overall security posture of your organization. Here are some key features you need to consider:

• Vendor collaboration portals: These user-friendly portals facilitate seamless document submissions and questionnaire navigation for vendors, simplifying risk scoring and document exchange to enhance collaboration.
• Robust risk control mechanisms: Look for software that includes stringent risk assessments and vulnerability detections associated with third parties. It should also provide templates and streamlined processes for managing vendor risks, ensuring effective oversight throughout.
• Intuitive reporting and visualization tools: Opt for software that offers transparent reports and visual representations, delivering comprehensive insights into risk exposure. These tools empower actionable steps based on assessment results, aiding in effectively mitigating future vendor-related risks.
• Compliance integration capabilities: Prioritize software that efficiently integrates with internal policies and external regulatory compliance standards, especially in highly regulated sectors like finance or government.
• Continuous monitoring features: Seek tools with continuous monitoring capabilities that track changes in vendor performance post-contract due diligence, promptly identifying any shortcomings in the vendor’s risk status.
• Vendor lifecycle management: A comprehensive TPRM solution should guide the entire vendor relationship lifecycle, providing clear steps from sourcing to relationship termination, ensuring a structured approach throughout.
• Insightful data analytics: Software offering both quantitative and qualitative data can showcase the progress in minimizing third-party risk exposure, enabling informed decision-making based on comprehensive insights.

These features enable effective third-party risk management, ensuring a streamlined process from documentation to actionable insights for reducing risk exposure.

Also check: A Complete Guide to Third-Party Risk Management

How to choose the best TPRM software

Selecting the best Third-Party Risk Management (TPRM) software involves carefully considering various factors that align with your organization’s needs and goals. Here’s a structured approach to help you choose the most suitable TPRM software:

• Assess your requirements: To choose the right TPRM software, understand your business requirements, risk tolerance, compliance commitments, and the extent of third-party relationships. Identify the necessary functionalities you require for third-party onboarding, risk evaluation, due diligence, monitoring, reporting, and seamless integration with current systems.
• Ease of use: The tool’s user-friendliness and interface are crucial. Evaluate how easily the software integrates with your existing infrastructure and the simplicity of implementation. Verify its compatibility with other tools and systems you use daily.
• Costs: The pricing of TPRM tools varies based on the services required. Basic packages may cover screening, while premium options offer more extensive features. Determine the total cost of ownership, including licensing fees, implementation costs, maintenance, and ongoing support. Ensure the pricing structure aligns with your budget and offers value for money.
• Scalability: Choose a TPRM solution that can scale as your organization grows and adapts to evolving business requirements. The software should be flexible enough to accommodate future changes.
• Training and support: Examine the vendor’s quality of customer support, training resources, and availability of technical aid. Good support ensures a smoother adoption process and ongoing usage.
• Security protocols: Assess the software’s security features, ensuring the protection of sensitive data. Look for encryption, robust access controls, and data protection mechanisms.
• Feedback: Seek insights from industry peers or professional networks experienced with the software. References and case studies offer real-world perspectives aiding your decision-making process.

Manage third-party risks with precision

Third-party risk management is a crucial process that requires a significant amount of attention. TPRM solutions are sentinels, offering proactive protection in an intricate web of partnerships. Embrace these innovative tools to empower your business with resilience and fortitude against potential threats, ensuring a secure and robust future.

Selecting the right vendors, assessing their security controls, and ensuring they adapt to the latest compliance requirements can be daunting. That is unless you have a dedicated solution to help you streamline all of this work for you. That’s where Sprinto comes in.

Sprinto, a smart compliance automation solution, helps you manage all tasks related to third-party risk management throughout their lifecycle. The platform automates vendor risk assessments, enables you to frame effective incident response plans, and sets up notifications when security controls fail, ensuring continuous compliance with regulatory standards.

Want to know how it’s done? Speak to our experts today. 

FAQs

Is third-party risk management important?

Yes. Many companies face challenges when vendors unexpectedly create problems. Inadequate risk management can lead to major losses. Effective practices help refrain from unforeseen security and operational risks and reduce their potential impact. 

Why use a TPRM tool?

Third-party risk management tools provide insight into vendor relationships. They help monitor changes and identify emerging risks early. This proactive approach allows you to address issues before they escalate.

How can TPRM software assist with compliance?

TPRM software automates compliance-related tasks, ensuring adherence to policies and regulations. It facilitates efficient tracking and reporting, reducing manual effort and improving regulatory compliance.

How does TPRM software improve vendor performance?

TPRM tools provide insights into vendor metrics and performance against service agreements. This data facilitates constructive discussions and performance improvements over time.

Do TPRM tools benefit small businesses?

Absolutely yes. TPRM tools designed for small businesses provide cost-effective risk management solutions tailored to their needs. They offer key functionalities while maintaining effective practices.