How To Implement A Third-Party Risk Management Framework

In regulated industries like financial services, banking, and insurance, a scalable TPRM programme must go beyond policies, templates and tick-boxes. 

It requires alignment between people, process, and platforms. That means embedding TPRM into everyday workflows, securing stakeholder buy-in, and giving your teams the tools to act consistently and confidently. 

This page outlines the key steps for building a practical, scalable third-party risk management framework that delivers results. 

1. Get Buy-In Across Teams   

Third-party risk management doesn’t sit in one department. To implement a truly effective framework, you need collaboration between: 

• Procurement – for supplier onboarding and segmentation 

• Risk and compliance – to align with internal policies and regulatory requirements 

• Legal and contracts – for mitigation and oversight 

• IT and security – especially for suppliers with data access or technical integrations 

• Finance – to track exposure and ensure supplier stability 

Why it matters: Without clear ownership, gaps will appear. Cross-functional alignment creates accountability and ensures third-party risk isn’t siloed. 

2. Embed TPRM Into Procurement Workflows 

One of the most common TPRM pitfalls? Treating it as an afterthought - instead of building it into procurement processes from day one. 

To embed TPRM into supplier selection and onboarding: 

• Use standardised questionnaires and evidence checklists 

• Define approval gates based on third party risk tier 

• Integrate assessments into contract negotiation timelines 

• Automate where possible using platforms like FSQS 

Why it matters: If your third-party risk assessments delay onboarding or duplicate effort, they’ll be bypassed or ignored. Embedding TPRM streamlines assurance and ensures no supplier enters without scrutiny. 

3. Leverage Shared Assurance Tools Like FSQS 

Scaling TPRM across hundreds or thousands of suppliers isn’t possible with spreadsheets alone. You need technology - and where possible, shared assurance. 

Platforms like FSQS support third-party risk management by: 

• Giving access to pre-qualified suppliers who meet industry expectations 

• Reducing duplicated requests through shared assessments 

• Centralising supplier data and risk documentation 

• Enabling collaboration between procurement, risk, and compliance 

Why it matters: FSQS provides a single source of truth for validated supplier data, allowing your teams to move faster while staying fully compliant. 

4. Make It Scalable and Audit-Ready 

A successful TPRM framework doesn’t just exist - it develops over time. That means: 

• Scheduling regular reviews and reassessments 

• Tracking performance against supplier SLAs and risk thresholds 

• Documenting actions taken for mitigation and reporting 

• Preparing for regulator audits with complete, accessible records 

This is where platforms and automation pay off - by reducing admin, eliminating duplication, and surfacing risks before they escalate. 

Final Thought: Implementation Is The Real Differentiator 

Anyone can draft a policy. But real third-party risk management is measured by what happens in practice - when suppliers onboard, contracts are signed, and issues arise. 

By building a scalable framework, embedding it into procurement, and using tools like FSQS to centralise risk data, you’ll reduce exposure, increase resilience, and stay ahead of compliance expectations.