The AI Advantage for TPRM: Turning Caution into Confidence for Security Leaders

5 minute read

November 2024

by Kaitlyn Frank

As AI technology advances, security leaders in third-party risk management (TPRM) face a stress-inducing choice: embrace AI to streamline and strengthen their programs or risk falling behind.

While hesitation toward adopting new technology is understandable, especially in risk management, where new technology can come with detrimental security risks, AI can offer significant benefits to TPRM programs. From accelerating assessments to improving data management, the current state of AI in TPRM can no longer be ignored, and organizations can balance caution with innovation to stay competitive and secure.

A Careful Start with AI – The Importance of Quality Data and Training

Diving into AI isn’t just a matter of flipping a switch; it requires a thoughtful approach. One of the most critical aspects of using AI in TPRM is ensuring that your datasets are robust, relevant, and secure.

AI is only as effective as the data it’s trained on, so investing in high-quality, well-secured data and carefully training AI models for specific tasks is essential. By assembling accurate datasets and maintaining awareness of any biases that might affect their data, companies can trust that AI will generate reliable, consistent results and reduce errors or ethical questions.

We also don’t recommend adopting AI technology and never looking back: building a successful AI model also involves an iterative training process. Data must be regularly reviewed, refined, and updated to reflect new trends, emerging threats, and regulatory changes affecting third-party risks. This ongoing data refinement ensures that your AI model remains adaptable and responsive and is an accurate tool for third-party risk management use cases.

Properly trained, AI becomes an invaluable resource for quickly identifying risks, reducing the resources needed to conduct assessments, and helping make risk-related decisions. However, neglecting data sourcing and training could lead to inaccurate or biased outputs, potentially undermining the value AI could bring to your TPRM efforts.

The Essential Role of Human Oversight

While AI can be powerful, human oversight remains a critical component in third-party risk management programs. When it comes to assessing vendors, AI can analyze patterns, identify anomalies, and predict potential risks, but human insight is still critical for interpreting complex scenarios, fostering trust, and handling sensitive communications.

For example, AI can flag potential risks surrounding a vendor, but a skilled human vendor risk manager’s review can evaluate if there were any external factors influencing the AI technology’s decision that might be important to consider. Maintaining a balance between AI-driven efficiency and human expertise is the key to managing risks effectively and responsibly.

Human oversight also plays an important role in refining and improving AI processes. By having people actively review AI recommendations and outcomes, companies can ensure that their AI models remain aligned with business objectives and compliance standards.

Feedback loops between human engineers and security professionals and the AI tools they’re using allow for real-time adjustments, making the system less susceptible to error and helping risk managers refine and evolve risk assessments. AI technology should augment human decision-making rather than replace it, contributing to a more robust risk management process.

Staying Competitive – AI Adoption as a Strategic Advantage

In the fast-paced business world, technology adoption can be a competitive differentiator. Organizations that implement new technology and innovative TPRM processes demonstrate a forward-thinking approach, which can be reassuring to potential customers and partners.

Staying on the cutting edge shows your company’s commitment to efficiency, innovation, and security. Conversely, slow adopters may risk being viewed as cumbersome or outdated, potentially deterring clients who seek agile, tech-savvy partners. Adopting well-trained and properly vetted AI positions your organization as proactive and adaptable, essential traits in the evolving landscape of TPRM.

This competitive advantage introduced by adopting advanced technology can also strengthen relationships with clients and partners by improving the speed and transparency of risk assessments. With AI handling repetitive, data-intensive tasks, TPRM teams can deliver faster assessments, which shortens the onboarding timeline for third parties and helps maintain clear communication with stakeholders.

By optimizing these processes, companies gain a reputation as efficient and trustworthy partners and free up resources to focus on other areas of customer satisfaction.

Bigger than TPRM: How AI Has Transformed Efficiency Across Industries

AI has already made waves across many industries, demonstrating its ability to enhance efficiency and address resource constraints. From automating customer service with chatbots to refining financial fraud detection and accelerating legal document review, AI has shown it can reliably streamline processes and reduce overhead.

For TPRM, AI offers similar benefits, enabling faster, more customizable vendor assessments and freeing risk managers to focus on high-value tasks. By learning from the successful implementation of AI in other business areas, organizations can confidently integrate it into their TPRM programs and see tangible returns.

AI also brings scalability to workflows that would otherwise require significant manual labor. For example, AI can assess large volumes of vendor data and extract insights at a speed and scale unattainable by human teams alone. This scalability is particularly valuable in TPRM, where the volume, complexity, and many sources of vendor data can quickly overwhelm traditional methods.

By embracing AI, businesses not only enhance their TPRM capabilities but also set a foundation for scalable, adaptable processes that can evolve with changing demands and industry standards.

Scaling TPRM with ProcessUnity’s AI-Powered Teams

AI is available and ready to add value to your third-party risk management program, but thoughtful and responsible adoption is key

With ProcessUnity’s AI-Powered platform, TPRM teams can accelerate and scale assessments to align with business demands, adding efficiency without sacrificing accuracy. With AI-backed inherent risk evaluation of new and already onboarded third parties, plus automated risk analysis that forecasts assessment data before a risk is present, your team can establish efficient in-house management of vendor assessment.

ProcessUnity’s AI-Powered Teams help third-party risk teams embrace AI, and combine with human oversight to build a TPRM framework that’s not only future-ready but also resilient, responsive, and capable of meeting the complexities of today’s risk landscape.

Request a demo to discover how ProcessUnity can help your business maximize the benefits of AI technology for your third-party risk management program.

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About Us

ProcessUnity is a leading provider of cloud-based applications for risk and compliance management. The company’s software as a service (SaaS) platform gives organizations the control to assess, measure, and mitigate risk and to ensure the optimal performance of key business processes. ProcessUnity’s flagship solution, ProcessUnity Vendor Risk Management, protects companies and their brands by reducing risks from third-party vendors and suppliers. ProcessUnity helps customers effectively and efficiently assess and monitor both new and existing vendors – from initial due diligence and onboarding through termination. Headquartered outside of Boston, Massachusetts, ProcessUnity is used by the world’s leading financial service firms and commercial enterprises. For more information, visit www.processunity.com.