An all-too-often misstep in taking on a Third-Party Risk Management (TPRM) initiative is not getting your internal and external teams ready and aligned around your risk objectives. TPRM requires a cohesive approach involving multiple teams, processes, and technologies to be successful.
The Strategic Alignment Framework™ is a best practices-based methodology that adapts to your organization’s TPRM initiative, streamlining your goals, teams, processes, and technologies. It includes six core pillars that guide Procurement, Risk Managers, IT, and other internal teams to cohesively and efficiently meet tasks and milestones necessary for mitigation and compliance.
The Strategic Alignment Framework™ provides customers with a unique Program Charter, covering objectives of your TPRM program, roles, roadmaps, blueprints, and more! Every company’s Program Charter will be unique to their TPRM initiative and goals- it’s a living document that contains six key chapters mapped to the framework’s methodology and works to maintain alignment across all teams.
According to Gartner research, 60% of organizations have over 1,000 suppliers, and with more suppliers comes a wider threat landscape. In Aravo’s 2021 TPRM Benchmarking Survey, an overwhelming 90% of respondents reported that their organization had experienced at least one incident related to a third party that either did or could have caused business disruption and/or reputational damage. Just imagine, a change in the business of your suppliers, vendors and third parties could have downstream, negative impact to their risk score/profile, and cause compliance issues for your organization.
As supplier networks continue to expand, so too do corporate governance and ethical obligations. In today’s enterprise, many organizations engage thousands of third parties directly, or through nth party subcontractors. Each of these brings increased vulnerability to potential risks, as well as the need for applicable regulatory compliance.
Gaining a comprehensive understanding of your supply chains, including third, fourth, and nth parties is critical to staying on top of potential risks, making timely, data-driven decisions in the face of continuous change, and taking mitigation actions.
A sound TPRM program is your insurance against the hidden and potentially costly risks of working with a variety of third parties around the world. The new SAF program is designed to help organizations meet these needs by achieving streamlined processes, operational efficiency, and meeting business outcomes.
The entire Strategic Alignment Framework™ journey and its output, the Program Charter, help organizations:
The Strategic Alignment Framework™ begins with 1-3 Discovery Sessions between you and the Aravo team. These are collaborative discussions designed to pinpoint your organization’s TPRM objectives, priorities, and key drivers, and they help us customize your Program Charter. These sessions drive the entire journey.
Once the Discovery Sessions are underway, we work to begin customizing your Program Charter, which is an ongoing, fluid process that grows with the more feedback and updates we discover together. And don’t worry, we guide you along every step of the way.
Areas your customized Program Charter cover include:
The process starts by defining the purpose of your TPRM program. Building from that, we work with your team on program goals and objectives in the Discovery Sessions, resulting in a full scope of the program.
We find your company’s place on a five-level maturity model, which helps to fit your TPRM program tactics, targets, and operational goals to your company and team’s readiness. Together, we determine where you are and where you want to go.
Next up, we identify and define the cross-functional roles & responsibilities, both internal and external, needed to deliver on your TPRM program. This is a collaborative process to ensure alignment.
With input from all involved parties, we build the roadmap that outlines your company’s plan for reaching your TPRM vision. This will be a phased, step-by-step implementation that incorporates best-practice insights for continuous program optimization and tactical decision-making.
Depending on what your scope looks like, a blueprint is created for each risk category, which maps out your software functionality, technologies, and integrations needed to deliver that specific risk domain. These blueprints ensure you have a documented model to find gaps, as well as paths you already have in place that work.
We wrap up your Program Charter with success metrics that gauge operational and business outcomes, allowing your team to see progressive business value impact as your third-party risk coverages increase and your program matures.
Still have questions, or are interested in getting your TPRM journey started? Our experts are here to help. Read more about the Strategic Alignment Framework™ process, or speak with one of our experts directly to get the ball rolling.
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