OUTSOURCING
Third-party risk management ( TPRM ) in procurement outsourcing has become an essential foundation for businesses , shaping resilience , compliance and long-term success . Managing a business is like a captain steering a ship , with each supplier or third-party partner representing a key crew member . Without the right safeguards , one weak link can sink the ship . This harsh reality is why 75 % of organisations now prioritise TPRM , according to KPMG ’ s global TPRM Outlook survey .
KPMG ’ s findings also reveal that 70 % of businesses acknowledge inefficiencies in their TPRM programmes , leaving them exposed to reputational risks . In today ’ s digital age , almost two-thirds ( 64 %) of TPRM budgets are laser-focused on cyber risk – but TPRM doesn ’ t stop at cybersecurity . It also enhances supply chain resilience and embeds ESG principles into operations while aligning with investor expectations .
As KPMG ’ s report makes clear , for those embarking on procurement outsourcing journeys , robust TPRM practices are no longer optional .
The regulatory landscape : Navigating compliance Regulatory waters are getting choppier , with global expectations reshaping how businesses manage third-party risks . For example , the UK ’ s Prudential Regulation Authority ( PRA ) and Germany ’ s Supply Chain Act serve as blueprints for operational resilience and sustainability .
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