What is Supplier Risk Management? | 360TPRM

Supplier Risk Management refers to the systematic process by which organisations identify, assess, monitor and control risks from their supplier relationships — from selection through to termination.

What does Supplier Risk Management cover?

Supplier Risk Management covers the entire lifecycle of a supplier relationship: selection and due diligence before contract, ongoing monitoring during collaboration and orderly exit strategies upon termination. Key risk types include cyber and IT risks, compliance risks, operational risks and reputational risks.

Holistic approach

Effective supplier risk management considers all risk types — not just cybersecurity, but also compliance, finance and operations.

Supplier Risk Management and regulatory requirements

NIS2, DORA and ISO 27001:2022 explicitly require structured supplier risk management. NIS2 Art. 21 obliges affected organisations to systematically manage supply chain risks. DORA requires financial entities to maintain comprehensive ICT third-party risk management including an information register and exit strategies.

Management liability

Under NIS2, executives are personally liable for inadequate supplier risk management — with fines up to €10M or 2% of global annual turnover.

How 360TPRM automates Supplier Risk Management

360TPRM automates the entire supplier risk management process: from automatic creation of the supplier inventory through continuous cyber intelligence monitoring to automated compliance documentation for NIS2 and DORA. Risks are detected before they escalate.

Continuous instead of annual

Traditional approaches with annual questionnaires are no longer sufficient. 360TPRM delivers continuous real-time monitoring of all suppliers.

FAQ

What is Supplier Risk Management?+

Supplier Risk Management is the systematic process of identifying, assessing and controlling risks from supplier relationships — across the entire lifecycle from selection to exit.

What is the difference between Supplier Risk Management and TPRM?+

The terms are often used interchangeably. TPRM is the international term covering all third parties, while supplier risk management focuses primarily on direct suppliers.

What does NIS2 require for Supplier Risk Management?+

NIS2 Art. 21 requires systematic supply chain risk management, including security requirements for suppliers, regular assessments and incident reporting.

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