State of Third Party Risk Management in 2024: AI’s Impacts & Future Trends
Traditional Third-Party Risk Management (TPRM) methods are increasingly inadequate in today’s tech-driven, fast-paced business environment. The report, which is based on an analysis leveraging VISO TRUST’s platform that contains profiles of more than 2.4 million companies as well as insights provided by CISOs, security, and TPRM professionals across various industries, reveals:
- Inadequate responses: Approximately 75% of vendors either ignore or delay crucial risk assessments.
- False positives: Conventional cyber risk ratings yield a 90% false positive rate, undermining their reliability.
AI-driven transformation
A crucial shift towards AI and artifact-based assessments to manage third-party relationships more effectively is needed. This report highlights the benefits:
- Enhanced accuracy: AI-driven methods refine risk assessment precision.
- Efficiency gains: Modern techniques reduce assessment timelines from months to days.
Businesses adopting these advanced approaches using AI have experienced transformative improvements:
- Near-complete coverage: AI and automation achieve almost 100% coverage of third-party networks.
- Significant increase in true positives: There’s a 500% rise in accurate risk identifications.
- Faster assessments: Risk evaluation times have decreased from 60 to 90 days to just five to eight days.
Key takeaway: future-proof your risk management
This report is a must-read for security leaders looking to revamp their TPRM strategies. Embracing AI and automation isn’t just an upgrade—it’s essential for navigating the third-party digital ecosystem securely and efficiently.