In the world of cybersecurity, Third-Party Risk Management has fundamentally focused on measurable risks such as data breaches, intellectual property theft, and compliance failures. This has been the foundation—the essential, measurable layer that companies rely on to mitigate third-party risks. Quantifying these risks through metrics like the financial cost of breaches or the compliance gaps revealed in audits has provided a solid base for cybersecurity efforts. However, this quantitative approach only scratches the surface of what truly matters in managing third-party risk.
Enter trust — a word that has swept through the industry, signalling a shift in thinking. It was a recognition that addressing TPRM isn’t just about numbers and metrics, but about the human element. Trust became a key indicator, highlighting the need for a deeper connection in managing third-party risk. It acknowledged the critical importance of vendor relationships, transparency, and collaboration. But the question remains: did the concept of trust go far enough? While it brought attention to the need for qualitative factors, it didn’t fully address the active management and nurturing of these relationships needed for long-term success.
As businesses continue to expand and rely on more third-party vendors, managing these relationships becomes the next crucial step. It’s no longer enough to simply mitigate risks; companies must foster trust and collaboration with their vendors to ensure security and growth. This shift from a purely risk-focused approach to one that prioritizes Third–Party “Relationship” Management is the future of vendor management—and it could well define the next wave of how businesses approach cybersecurity.
For many teams, TPRM often starts with completing checklists and ticking compliance boxes—that’s a necessary part of the process. With modern vendor risks and vulnerabilities, it is recommended to dive much deeper. We’ve seen with some of our long-term clients that the wider value comes from removing the burden of detailed, time-consuming tasks. When looking at best practices, Third Party ‘Relationship’ Management should allow teams to focus on managing vendor relationships with greater care and attention. By doing so, they can increase transparency, operate with more confidence, and foster trust, ensuring relationships are built to last.
Trust is a word you now see everywhere—from cybersecurity conferences and website homepages (including ours!) to billboards across the tech hub of San Francisco. It’s impossible to ignore. But simply using the word ‘trust’ isn’t enough. Too often, it feels hollow—overused to the point where it may have lost its meaning. The real challenge lies in building and maintaining trust through actions, not just words.
Despite over 60% of data breaches being linked to third-party sources, a study conducted by Forrester Consulting on behalf of CyberGRX shows that only 61% of security and risk management professionals are concerned about third-party supplier risk. And this is a significant oversight.
According to the Ponemon Institute, 53% of companies experienced a data breach related to third parties in the past year—surpassing even phishing attacks (KnowBe4). To add to that, IBM assesses the cost of a data breach increases by an average of $370,000 if caused by a third party, bringing the cumulative cost to $4.29 million.
These statistics expose a significant gap: businesses are often unprepared for risks they cannot fully control. And this is exactly where the conversation is shifting—moving beyond the traditional risk-first approach toward a new, trust-centered vision for Third-Party Relationship Management.
For too long, vendors have been viewed as liabilities—potential weak points within an organization’s security framework. Risk management has traditionally centred on compliance and mitigation, missing the opportunity to foster strong, trust-based partnerships. This narrative is now evolving, as the concept of Third-Party Relationship Management reframes vendors as collaborators rather than merely risks.
Organizations today rely on an increasingly interconnected network of vendors, particularly in IT, where 37% of operations are outsourced, according to Radix. Since the pandemic, 45% of businesses have further increased outsourcing to tap into specialized skills they lack in-house. As businesses expand globally, building trust in these third-party relationships has become essential, not optional.
With this in mind, TPRM solutions and platforms are evolving to meet this reality, going beyond simple risk management. These tools enhance relationship management by streamlining compliance processes and offering real-time insights into vendor performance. By simplifying traditionally cumbersome tasks like manual assessments, they create a framework for fostering long-term, productive partnerships with vendors.
The future of third-party risk management lies in reimagining vendor relationships through the lens of building relationships over the long term. No longer just a byproduct of compliance, business relationships must be the cornerstone of how we manage third-party risk. Successful businesses today need partnerships built on mutual trust and transparency to navigate the complexities of today’s global, outsourced business environment.
We need to work to transform risk management from a basic, purely transactional process into one that builds long-term, trust-based relationships. In a world where 53% of companies have faced a third-party data breach, the need for a trust-based approach has never been greater.
This shift toward Third-Party Relationship Management represents a new direction for managing vendor partnerships. Moving beyond mere risk mitigation, it redefines these relationships as strategic assets, creating value by fostering trust, collaboration, and shared success. As the landscape of third-party involvement grows more complex, embracing this trust-centered approach may very well be the future of TPRM.
