By Sean Cronin, CEO, ProcessUnity

The Year of Third-Party Risk Management

Third-Party Risk Management (TPRM) is a hot market and I predict 2020 will only continue to bring new problems (and new solutions) to this growing industry.

Third-Party Risk Management Demand Will Skyrocket

EY says 30 percent of organizations have experienced a third-party breach within the past two years. Unfortunately, that number will only continue to grow.

Gone are the days when highly-regulated industries were the only organizations in need of vendor risk automation. With third-party data breaches affecting organizations of all sizes and industries, demand for automated Third-Party Risk programs will skyrocket as executives recognize that a systematic, repeatable program is necessary to help safeguard their organization from an attack. The myriad mails, Excel spreadsheets and calendar reminders that vendor managers sift through each day aren't cutting it.

Early Adopters Will Start to Look for New Solutions

While new markets are purchasing solutions for the first time, other industries are ready to make a change.

Highly-regulated industries, like financial services, have been using automated solutions to streamline their third-party risk management programs for years. These organizations implemented legacy solutions to take the first step into program automation but now need a new solution that can keep up with changing industry regulations and maturing program requirements.

Risk management teams overseeing mature programs will be ready to take their program to the next level. These teams want to move away from the out-of-date products that locked them into a one-size-fits-no-one TPRM program in favor of a flexible solution that will grow with them as their requirements inevitably change over time.

Increased Demand Will Mean Increased Competition

Now more than ever, companies must protect their brands by reducing risks from third-party vendors and suppliers. As third-party risk management demand continues to grow, new companies will also crop up promising to solve TPRM inefficiencies.

Solutions that can help customers effectively and efficiently assess and monitor both new and existing vendors - from initial due diligence and vendor onboarding, through ongoing monitoring and vendor termination - will be the solutions that will succeed most in 2020.

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About the Author

As CEO of ProcessUnity, Sean Cronin is responsible for leading all aspects of the company from strategy to day-to-day business operations. He brings over 15 years of Governance, Risk and Compliance (GRC) experience to the company.

Throughout his career, Sean has been on the front-line working with clients, developing people, and building teams. Prior to joining ProcessUnity, Sean was global vice president of client operations and pre-sales for the Risk Segment at Thomson Reuters Corporation.

Sean graduated from the United States Naval Academy, serving for 7 years as an officer in the US Navy, and earned his MBA from the University of Rhode Island.