What is the third-party risk management life cycle?

Third-party risk management life cycle – A framework of the natural stages that the relationship between an organization and a third party evolves through over time. The stages often include:

• planning
• due diligence
• contract negotiation
• ongoing monitoring
• termination

Third-party risk management programs are usually constructed to manage each stage within this life cycle in the context of the organization’s overall risk appetite and resilience objectives.