Why You Should Invest in Third-Party Risk Management

Whether you’re responding to new regulations like DORA or simply trying to reduce duplicated assessments, investing in a robust third-party risk management framework can pay dividends across your entire supply chain. 

TPRM Enables Faster, Safer Decisions  

Without structured third-party risk management, teams often rely on ad hoc processes, duplicated checks, or outdated spreadsheets - slowing down onboarding and exposing your organisation to unnecessary risk. 

Investing in TPRM enables you to: 

• Cut onboarding timelines by quickly identifying low-risk suppliers 

• Focus due diligence where it’s needed most 

• Give procurement and compliance teams confidence in supplier decisions 

Platforms like FSQS support this by providing access to pre-qualified suppliers with validated assurance data, making it easier to move at speed without cutting corners. 

It Builds Confidence With Regulators 

Regulators across the UK and EU - from the FCA and PRA to DORA and EBA frameworks - are demanding more structured oversight of third-party risk. That means proving you know who your critical suppliers are, what risks they pose, and how you’re managing them. 

A mature TPRM programme helps you: 

• Meet compliance obligations with audit-ready documentation 

• Demonstrate accountability across your supply chain 

• Reduce the risk of fines, investigations, or reputational fallout 

With increasing scrutiny around cloud vendors, data processors, and outsourced services, third-party risk management is fast becoming a board-level priority. 

You’ll Reduce Duplication And Internal Admin

Many financial institutions face the same issue: hundreds of risk assessments, repeated across multiple teams or business units - creating inefficiency and fatigue, both internally and for suppliers. 

A centralised third-party risk management framework: 

• Prevents duplicated requests and manual rework 

• Gives teams one source of truth for supplier status and risk scoring 

• Streamlines renewals, reassessments, and offboarding 

With FSQS, shared supplier assurance reduces the burden across the entire ecosystem - helping everyone work more efficiently, not just your organisation. 

You Can Strengthen Resilience And Reduce Disruption

Supplier failures - whether operational, ethical, or financial - have knock-on effects across your business. A proactive approach to third-party risk allows you to act before problems escalate. 

With effective TPRM, you can: 

• Spot red flags early and take corrective action 

• Avoid costly service outages or compliance breaches 

• Build in continuity plans, fallback options, and supplier diversification 

In highly connected supply chains, resilience is no longer optional - it’s a competitive advantage. 

You’ll Build Better Supplier Relationships

TPRM doesn’t have to be painful for suppliers. In fact, when done right, it can improve collaboration, increase transparency, and reduce fatigue caused by repeated data requests. 

By investing in scalable, supplier-friendly processes, you: 

• Improve supplier engagement and responsiveness 

• Reduce friction during onboarding and audits 

• Create a culture of shared accountability and continuous improvement 

Platforms like FSQS make this easier by centralising assurance in one place, so suppliers complete one assessment that’s shared across multiple buyers. 

The Bottom Line: TPRM Delivers Strategic Value 

Third-party risk management isn’t just about protecting your business - it’s about enabling it. From reducing regulatory exposure to improving procurement agility, a well-implemented TPRM framework becomes a force multiplier. 

When backed by the FSQS community model, you gain: 

• Shared supplier assurance across the industry 

• Validated risk data for smarter decision-making 

• Reduced admin, faster onboarding, and better outcomes