VISO TRUST's
2024 State of Third Party Risk Management: AI's Impacts
and Future Trends codifies the growing awareness that longstanding
Third-Party Risk Management (TPRM) methods have become far less effective in
today's digitally transforming business environment.
The report's findings
leverage VISO TRUST Platform-derived data, which includes profiles of more than
2.4 million companies, as well as insights from CISOs, security, and TPRM
professionals surveyed across various industries.
Among key findings on
legacy TPRM:
- Inadequate
responses: Approximately 75% of vendors responding to legacy questionnaire
approaches requiring manual input either ignore or delay crucial risk
assessments.
- False
positives: Conventional cyber risk ratings yield a 90% false positive
rate, undermining their reliability.
AI-driven transformation
of TPRM findings:
- Efficiency
gains: AI-assisted modern TPRM programs reduce vendor and partner
assessment timelines from months to days.
- Near-complete
coverage: AI and automation achieve almost 100% coverage of third-party
networks.
- Significant
increase in true positives: data analysis revealed a 500% rise in accurate
risk identifications.
- Faster
assessments: Risk evaluation times have decreased from 60 to 90 days to
just five to eight days.
- Enhanced
accuracy: AI-driven methods refine risk assessment precision.
TRPM and the Era of
AI-Driven Transformation
VISO TRUST experts note that
while new large language models (LLMs) and generative processing have recently
entered the public arena, innovators have been evolving machine learning and
sophisticate AI applications for years, and the addition of generative AI to
these applications is enhancing both their evolution and their usability.
Innovators behind these
purpose-specific AI applications and initiatives have amassed both the data
that's foundational to intelligence and the deep-learning capabilities needed
to leverage the massive data troves to derive new knowledge with unprecedented
speed and levels of insight.
This turns AI into a true
collaborator that handles formerly arduous, months-long tasks in minutes or
hours, It also makes readily available new and highly applicable insight and
technical acumen.
As a result, forward-thinking
organizations are transforming TPRM programs, enabling analysis of more
vendors, at a deeper level, and in a timeframe that supports critical business
decisions-and growing the risk practitioner's value to their organization.
Decisions around mitigation
responses to a third party's cyberattack, the timely analysis of potential
M&A partners, and more informative assessments of an organization's
community of potential partners are just some of the insights that risk professionals
are offering. These aspects of a risk professional's role will become even more
important as threat actors apply their own AI-enabled, advanced threats.
VISO TRUST's report
underscores the challenges and inefficiencies that burden traditional TPRM
approaches. It also shows how AI-driven, artifact-based assessments can address
these challenges by offering more precise and timely insights, enhancing a company's
ability to make informed decisions at the speed of business.
For a copy of the
2024 State of Third Party Risk Management: AI's Impacts and Future Trends
report, visit https://visotrust.com/resources/ai-and-tprm-shaping-the-risk-landscape-of-today/