5 Key Strategies for Third-Party Risk Management in 2025

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As we move towards 2025, third-party supply chain risk is set to become a major concern for businesses. But what exactly does this mean? Third-party supply chain risk refers to the vulnerabilities and potential disruptions that arise when external vendors, contractors, or service providers fail to meet expectations, whether due to operational failures, cyberattacks, financial instability, or regulatory non-compliance. These risks are increasingly common, with more businesses relying on external suppliers and partners for everything from raw materials to technology. This dependency makes third-party risk a critical aspect of managing business continuity, and its importance has never been more urgent.

Why Third-Party Supply Chain Risk Matters?

In today’s highly connected world, organisations are interdependent—rarely does a business operate entirely within its own walls. From technology vendors to logistics providers, external partners form the backbone of many business operations. This reliance opens the door to a variety of risks. For instance, cyberattacks targeting third-party vendors are a growing concern, with breaches often affecting the entire supply chain. According to Deloitte, 59% of organisations reported a data breach caused by a third-party supplier last year alone.

The challenge doesn’t stop at cyber risks. Financial instability, natural disasters, and supply delays can also have a ripple effect on your business. When one part of the chain fails, the consequences can cascade through the entire system, affecting production, delivery, and customer satisfaction. Furthermore, new regulations like the EU’s Digital Operational Resilience Act (DORA) are forcing companies to strengthen their risk management practices and comply with stricter guidelines. Non-compliance can lead to hefty fines and damage to reputation, making third-party risk not only a security concern but a legal and financial one too.

How to Turning Risk into Resilience?

While third-party risks pose clear challenges, they also offer an opportunity for businesses to gain a competitive edge. Gartner reports that organisations with robust third-party risk management systems face 30% fewer disruptions compared to those without them. In other words, businesses that invest in strengthening their supply chain resilience can better weather external shocks, remain compliant with new regulations, and build stronger relationships with customers and partners.

5 Key Strategies to Tackle Third-Party Risk in 2025:

1. Implement Continuous Monitoring

Waiting until disaster strikes isn’t an option. Continuous monitoring tools give real-time insights into the security of third-party vendors, enabling businesses to spot and address risks before they escalate. Think of it as a smoke detector for your supply chain—helping you avoid the fire before it starts.

2. Conduct Thorough Vendor Due Diligence

It’s essential to know who you’re doing business with. Assessing a vendor’s security measures, financial stability, and compliance with regulations before entering into a partnership will help you identify potential risks early. A little extra effort upfront can save a great deal of trouble later on.

3. Build a Resilient Risk Management Framework

Building a resilient supply chain involves preparing for the unexpected. Businesses that establish contingency plans, diversify their suppliers, and create redundancies are 40% quicker to recover from disruptions. Make resilience a priority, and your business will be better equipped to bounce back from any challenges.

4. Stay Ahead of Regulatory Changes

With new regulations like DORA on the horizon, businesses must stay ahead of the curve to remain compliant. Proactively investing in systems and processes that align with these regulations will help you avoid penalties and ensure smoother operations. Don’t wait for the rules to change—be prepared for them.

5. Enhance Collaboration with Key Suppliers

Open communication and strong partnerships with key suppliers are crucial to managing third-party risks effectively. Regular security assessments, joint risk management strategies, and clear expectations will help ensure both parties are aligned in their approach to risk mitigation. It’s all about building trust and working together to safeguard the supply chain.

Stay Secure, Stay Ahead

Third-party supply chain risk isn’t going away anytime soon, but businesses can turn this challenge into an opportunity. By implementing continuous monitoring, strengthening vendor due diligence, building resilient frameworks, staying ahead of regulations, and enhancing collaboration with key suppliers, you can protect your operations and stay competitive in 2025 and beyond. The best defence against third-party risks is being proactive. Get ahead of the issues before they become crises, and your business will be well-positioned for success.

At SECURE | CYBER CONNECT, we believe that tackling Cultural, Technological and Talent Acquisition challenges requires collaboration among industry stakeholders. Let’s work together to address these challenges and secure a brighter future for our industry. Connect with us today to explore how we can help you find the talent needed to protect your business and drive innovation for tomorrow.

Introducing Mark Child and Paul Foster

Mark Child and Paul Foster are leading experts in the field of cyber security, renowned for their extensive experience in driving innovation and delivering strategic solutions. Mark, a seasoned CEO and co-founder of Cyber London , has played a crucial role in advancing technology risk management, operational resilience, and compliance across diverse global markets. His work with top-tier companies has helped strengthen security frameworks and mitigate risks. Paul, a respected technologist and advisor, is known for his success in managing high-impact IT strategies, raising investment for AI start-ups, and bolstering security for global organisations. Together, Mark and Paul bring unmatched insight into today’s most urgent cyber security challenges.

About Quantum Evolve

Quantum Evolve - Business Enablement is a trailblazer in third-party risk management, offering innovative solutions that help businesses navigate the complex world of supply chain security. Their flagship platform, Touchstone, provides continuous monitoring, customisation, and scalability, allowing organisations to stay ahead of evolving threats and regulatory changes. With a focus on resilience and compliance, Quantum Evolve helps businesses secure their operations while maintaining agility and driving growth, providing organisations with the tools they need to manage risks effectively and confidently.

Why This Podcast Is a Must-Watch/Listen

The SECURE | CYBER CONNECT Podcast is an essential resource for business owners, founders, and leaders in technology and cyber security. In this episode, Mark Child and Paul Foster delve into critical topics such as third-party supply chain risks, emerging regulations, and how organisations can build long-term resilience. They discuss practical approaches to managing supply chain dependencies, meeting new compliance standards, and mitigating cyber risks. With expert insights and real-world solutions, this episode is packed with valuable advice for anyone seeking to stay ahead in the rapidly evolving landscape of cyber security.

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