TPRM: Solving Vendor Risk

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TPRM: Solving Vendor Risk

PostedJanuary 28, 2025
UpdatedJanuary 28, 2025
ByDawn Christine Simmons

TPRM: Solving Vendor Risk ServiceNow Third-Party Risk Management (TPRM) is essential for vendors, healthcare, and governments to combat cybersecurity threats and compliance challenges. The recent MOVEit breach sent ripples across healthcare, government agencies, and countless vendors—exposing gaps in third-party security.

MoveIt Transfer Software and the Use Case for TPRM: Solving Vendor Risk

The MOVEit breach of May and June 2023 (CVE-2023-34362) shook healthcare, government agencies, and global vendors—exposing severe gaps in third-party security oversight. Consequently, organizations worldwide were thrust into crisis mode, scrambling to protect sensitive data and comply with stricter regulations. Moreover, over 60% of companies now report at least one vendor-related breach per year, and annual regulatory fines surpass $10 billion. Therefore, it is clear that a reactive approach to cybersecurity is no longer viable.

Businesses were forced to confront the harsh reality of insufficient vendor oversight, highlighting the critical need for continuous security monitoring, rigorous vendor assessments, and proactive threat mitigation.

Lessons to be learned with TPRM: Solving Vendor Risk

  • Third-party solutions must be continuously evaluated and monitored for vulnerabilities.
  • A reactive approach to cybersecurity is no longer viable in today’s evolving threat landscape.
  • Automated risk assessments and real-time monitoring tools are essential to mitigating vendor risks.

TPRM: Solving Vendor Risk is an expert study when following the work of Heal Security Management in Government, healthcare, and cybersecurity from Charles Aunger to the American Medical Association.

Enter ServiceNow Third-Party Risk Management (TPRM). By centralizing vendor assessments, automated SLA tracking, and real-time vulnerability insights, organizations can proactively secure their supply chain. ServiceNow TPRM equips stakeholders—from compliance officers to IT security teams—with a transparent overview of each vendor’s risk score and remediation status. This visibility fosters accountability and accelerates response times, ensuring issues are tackled before they escalate into major breaches.

Third Party Vendor Risks have posed risks for global government space and in the following video is a perfect discussion of why this is so very important!

For organizations that handle sensitive data—whether in healthcare, government, or critical infrastructure sectors—adopting a robust TPRM solution is imperative. By leveraging ServiceNow TPRM, leaders not only mitigate immediate cyber threats but also strengthen their long-term resilience against evolving attacks.

Introduction: Addressing Vendor Risk Challenges with ServiceNow TPRM

ServiceNow Third-Party Risk Management (TPRM) is an essential tool for organizations looking to mitigate the growing risks associated with vendors and suppliers. With over 60% of organizations reporting third-party breaches and regulatory fines exceeding $10 billion annually, businesses must implement a structured risk management approach to protect their operations and maintain compliance.

Governments, healthcare providers, and vendors face increasing cybersecurity threats, stringent regulatory requirements, and ongoing supply chain disruptions. ServiceNow TPRM offers a comprehensive solution to automate risk assessments, enhance compliance, and ensure operational continuity.

Why Vendors, Healthcare, and Governments Need TPRM Now

1. Rising Cybersecurity Threats

Cyberattacks targeting third-party suppliers are becoming more sophisticated, with ransomware incidents rising by 150% year-over-year. Healthcare and government sectors are prime targets due to the sensitive nature of their data.

Solution: ServiceNow TPRM provides proactive risk monitoring, real-time alerts, and automated workflows to prevent breaches before they escalate.

2. Regulatory Compliance Challenges

Organizations must adhere to strict regulations such as HIPAA, GDPR, NIST, and FedRAMP, with non-compliance resulting in hefty fines and reputational damage.

Solution: ServiceNow TPRM streamlines compliance by automating risk assessments, tracking regulatory requirements, and generating audit-ready documentation.

3. Supply Chain Disruptions

The COVID-19 pandemic and geopolitical events have exposed vulnerabilities in supply chains, leading to 45% of businesses experiencing significant delays and financial losses.

Solution: ServiceNow TPRM helps organizations assess supplier resilience, ensure business continuity, and identify alternative vendors proactively.

4. Operational Efficiency & Cost Reduction

Manual third-party risk management processes are error-prone and costly, with companies spending an average of 2,000 hours annually on vendor assessments.

Solution: ServiceNow TPRM automates risk evaluations, contract reviews, and compliance tracking—reducing operational costs and improving accuracy.

5. Strengthening Vendor Accountability

Effective vendor management fosters trust and transparency. Studies show that organizations with strong third-party governance experience 30% fewer compliance violations.

Solution: ServiceNow TPRM provides a centralized portal where vendors can submit compliance documentation and performance reports, ensuring accountability.

Use Cases of ServiceNow TPRM

Healthcare Industry:

  • Managing compliance with HIPAA and HITRUST.
  • Vendor risk assessments for medical equipment suppliers.
  • Protecting patient data from third-party breaches.

Why it matters: Healthcare organizations rely on external vendors for critical operations, making risk management crucial for patient safety and data security.

Government Agencies:

  • Ensuring third-party compliance with national security regulations.
  • Risk assessments for contractors handling sensitive data.
  • Monitoring vendor performance for public trust.

Why it matters: Governments must safeguard citizen data and maintain operational continuity amidst evolving threats.

Financial Services:

  • Mitigating financial fraud risks from third-party vendors.
  • Compliance with PCI-DSS and other regulations.
  • Real-time monitoring of vendor transactions.

Why it matters: Financial institutions face significant financial and reputational risks from third-party partnerships.

Getting Started with ServiceNow TPRM

  1. Evaluate Your Needs: Identify high-risk vendors and compliance requirements.
  2. Implement TPRM Modules: Configure the platform to align with your risk framework.
  3. Train Your Team: Provide user training and access to best practices.
  4. Monitor Continuously: Use real-time dashboards for ongoing vendor performance tracking.

Conclusion: Take Action Now

In today’s evolving risk landscape, organizations cannot afford to neglect third-party risks. ServiceNow TPRM empowers businesses to proactively manage risks, ensure compliance, and achieve operational resilience. By adopting a structured approach to vendor risk management, organizations can safeguard their operations and maintain regulatory confidence.

Third-Party Risk Management (TPRM) is essential for organizations to gain visibility into risks that can impact their business. Here’s how TPRM helps:

  1. Centralized Vendor Assessments: TPRM centralizes the assessment of vendors, allowing organizations to have a clear and comprehensive view of each vendor’s risk profile. This helps in identifying potential vulnerabilities and areas of concern.
  2. Automated SLA Tracking: By automating Service Level Agreement (SLA) tracking, TPRM ensures that vendors meet their contractual obligations. This reduces the risk of non-compliance and operational disruptions.
  3. Real-Time Vulnerability Insights: TPRM provides real-time insights into vulnerabilities, enabling organizations to proactively address risks before they escalate into major issues.
  4. Continuous Monitoring: TPRM involves continuous monitoring of third-party relationships, ensuring that any changes in risk levels are promptly identified and addressed.
  5. Regulatory Compliance: TPRM helps organizations stay compliant with various regulations by automating risk assessments and tracking regulatory requirements.
  6. Operational Efficiency: By automating risk evaluations and compliance tracking, TPRM reduces operational costs and improves the accuracy of risk management processes.
  7. Strengthening Vendor Accountability: TPRM fosters accountability by providing a transparent overview of each vendor’s risk score and remediation status, ensuring that issues are tackled before they escalate.

By leveraging TPRM, organizations can safeguard their operations, maintain regulatory confidence, and ensure long-term resilience against evolving cyber threats.

Ready to elevate your third-party risk management strategy? Explore ServiceNow TPRM today and stay ahead of evolving threats.

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