Third-Party Risk Management
/ˈθɜrdˌpɑrti rɪsk ˈmænɪdʒmənt/
Definitions
- (n.) The process by which a business identifies, assesses, and controls risks posed by external entities involved in its operations, ensuring compliance and minimizing legal exposure.
Effective third-party risk management protects companies from legal liabilities arising from their vendors' actions.
Forms
- third-party risk management
Related terms
See also
Commentary
Typically integrated into corporate governance, third-party risk management should address contractual safeguards and regulatory compliance to mitigate legal exposure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.