Key Trends in Third-Party Risk Management (TPRM) for 2025
Introduction
In an era where organisations are increasingly interdependent through global supply chains, outsourcing and digital ecosystems, third-party risk has become one of the most vital aspects of enterprise risk management. The SolarWinds hack, the MOVEit vulnerabilities and recent software vendor attacks all serve as a reminder of the necessity to enhance Third-Party Risk Management (TPRM). As cyber risks evolve and become more sophisticated and as regulatory oversight sharpens globally, 2025 is a transformative year for the development of TPRM practices. This blog explores the top trends redefining TPRM in 2025, encompassing real-time risk scoring, AI-driven due diligence, harmonisation of regulations, integration of ESG, and a shift towards continuous monitoring. All of these trends signal a larger movement towards resilience, openness and anticipatory defence in an increasingly dependent world.
Real-Time and Continuous Monitoring becomes the Norm
The old TPRM methods entailed point-in-time testing, which typically was an annual or onboarding process. By 2025, organisations are shifting towards continuous, real-time monitoring of their third-party ecosystems. Now, authentic advanced tools are making it possible for companies to take a real-time pulse of the security of their vendors by monitoring threat indicators, patching practices and digital footprint variations. This change has been further spurred by the growth in cyber supply chain attacks, where the attackers target vendors to gain access to bigger organisations. Real-time monitoring software enables the timely detection of malicious activity, equipping organisations with a faster defence response. It also guarantees dynamic risk rating instead of relying on outdated questionnaire-based scoring.
AI and Automation in Risk Assessment and Due Diligence
Manual TPRM processes aren't sustainable anymore. In 2025, AI and machine learning are reshaping the TPRM lifecycle from onboarding and risk classification to contract review and incident handling. AI technology can now analyse massive amounts of vendor documentation and automatically raise red flags on potential issues. Natural language processing (NLP) is becoming more common for automated contract intelligence, which assists in the detection of risky clauses or liability gaps or data protection obligations. In addition, automation is increasing scalability for large organisations that have hundreds or thousands of third-party relationships, eliminating human errors and compliance fatigue. However, all of this must be implemented with a strong focus on security, transparency, and ethical AI use to ensure that sensitive vendor and organisational data remains protected throughout the process.
Risk Quantification and Business Impact Mapping
Risk scoring in isolation is no longer adequate. One of the major trends for 2025 is the merging of third-party risk with business impact analysis (BIA). Organisations are using tools that associate vendors to particular business processes and assets, allowing better knowledge of how a compromise of a vendor would impact operations, customer information or financial position. This movement has resulted in increased use of risk quantification models, such as FAIR (Factor Analysis of Information Risk), which puts dollar values on risks associated with vendors. By using the language of business value, CISOs and risk officers are more effective at prioritising risks and making resource allocations.
Environmental, Social, and Governance (ESG) enters into TPRM
As ESG keeps growing on the corporate agenda, organisations are taking TPRM one step further than cybersecurity and legal risks and expanding it to incorporate ESG-related factors. In 2025, organisations evaluate if their suppliers have ethical labour practices, sustainable supply chains, DEI (Diversity, Equity, Inclusion) metrics and climate impact disclosures. This growth is not only a reputational concern, but also a third-party non-compliance with ESG can now invoke regulatory or shareholder action. ESG risk scoring software and vendor ESG audits are becoming components of onboarding and performance evaluations.
Shared Assessments and Third-Party Exchanges
With the duplication of effort by having multiple vendors respond to the same security questionnaires, the trend is moving toward shared assessments. Systems such as the SIG Questionnaire (Standardised Information Gathering) and the Global Vendor Exchange allow vendors to upload once and share with many clients. This change not only simplifies the due diligence process but also enhances data accuracy, standardisation and vendor experience. In 2025, organisations are relying more and more on industry-wide vendor assurance platforms to minimise duplication, decrease costs and maximise trust.
Incident Response and Resilience Partnerships
Another trend on the rise is bringing vendors into incident response planning. In 2025, proactive organisations address major vendors as more than suppliers but as resilience partners. This encompasses shared tabletop exercises, communication procedures and breach notification SLAs. With the increasing ransomware attacks and cloud reliance, organisations are now calling for vendor-side recovery plans, RTO and RPO metrics. TPRM is transforming into a comprehensive resilience management function where readiness and not mere compliance takes centre stage.
Conclusion
Third-Party Risk Management in 2025 is no longer about checklists and compliance audits; it's a dynamic, intelligence-driven and continuous process. With regulatory alignment, AI automation, real-time monitoring, ESG integration and resilience partnerships leading the way, organisations are transforming their TPRM programs to address contemporary threat landscapes. As digital ecosystems grow increasingly complex and interdependent, managing third-party risk is now essential. Early adopters who invest in tools, talent and governance will be more likely to create secure and resilient businesses for the AI era.
References
- https://finance.ec.europa.eu/publications/digital-operational-resilience-act-dora_en
- https://digital-strategy.ec.europa.eu/en/policies/nis2-directive
- https://www.meity.gov.in/data-protection-framework
- https://securityscorecard.com
- https://sharedassessments.org/sig/
- https://www.fairinstitute.org/fair-model
Related Blogs
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Executive Summary:
Footage of the Afghanistan cricket team singing ‘Vande Mataram’ after India’s triumph in ICC T20 WC 2024 exposed online. The CyberPeace Research team carried out a thorough research to uncover the truth about the viral video. The original clip was posted on X platform by Afghan cricketer Mohammad Nabi on October 23, 2023 where the Afghan players posted the video chanting ‘Allah-hu Akbar’ after winning the ODIs in the World Cup against Pakistan. This debunks the assertion made in the viral video about the people chanting Vande Mataram.
Claims:
Afghan cricket players chanted "Vande Mataram" to express support for India after India’s victory over Australia in the ICC T20 World Cup 2024.
Fact Check:
Upon receiving the posts, we analyzed the video and found some inconsistency in the video such as the lip sync of the video.
We checked the video in an AI audio detection tool named “True Media”, and the detection tool found the audio to be 95% AI-generated which made us more suspicious of the authenticity of the video.
For further verification, we then divided the video into keyframes. We reverse-searched one of the frames of the video to find any credible sources. We then found the X account of Afghan cricketer Mohammad Nabi, where he uploaded the same video in his account with a caption, “Congratulations! Our team emerged triumphant n an epic battle against ending a long-awaited victory drought. It was a true test of skills & teamwork. All showcased thr immense tlnt & unwavering dedication. Let's celebrate ds 2gether n d glory of our great team & people” on 23 Oct, 2023.
We found that the audio is different from the viral video, where we can hear Afghan players chanting “Allah hu Akbar” in their victory against Pakistan. The Afghan players were not chanting Vande Mataram after India’s victory over Australia in T20 World Cup 2014.
Hence, upon lack of credible sources and detection of AI voice alteration, the claim made in the viral posts is fake and doesn’t represent the actual context. We have previously debunked such AI voice alteration videos. Netizens must be careful before believing misleading information.
Conclusion:
The viral video claiming that Afghan cricket players chanted "Vande Mataram" in support of India is false. The video was altered from the original video by using audio manipulation. The original video of Afghanistan players celebrating victory over Pakistan by chanting "Allah-hu Akbar" was posted in the official Instagram account of Mohammad Nabi, an Afghan cricketer. Thus the information is fake and misleading.
- Claim: Afghan cricket players chanted "Vande Mataram" to express support for India after the victory over Australia in the ICC T20 World Cup 2024.
- Claimed on: YouTube
- Fact Check: Fake & Misleading
Introduction
The ongoing debate on whether AI scaling has hit a wall has been rehashed by the underwhelming response to OpenAI’s ChatGPT v5. AI scaling laws, which describe that machine learning models perform better with increased training data, model parameters and computational resources, have guided the rapid progress of Large Language Models (LLMs) so far. But many AI researchers suggest that further improvements in LLMs will have to be effected through large computational costs by orders of magnitude, which does not justify the returns. The question, then, is whether scaling remains a viable path or whether the field must explore new approaches. This is not just a tech issue but a profound innovation challenge for countries like India, charting their own AI course.
The Scaling Wall: Gaps and Innovation Opportunities
Escalating costs, data scarcity, and diminishing gains mean that simply building larger AI models may no longer guarantee breakthroughs. In such a scenario, LLM developers will have to refine new approaches to training these models, for example, by diversifying data types and redefining training techniques.
This global challenge has a bearing on India’s AI ambitions. For India, where compute and data resources are relatively scarce, this scaling slowdown poses both a challenge and an opportunity. While the India AI Mission embodies smart priorities such as democratising compute resources and developing local datasets, looming scaling challenges could prove a roadblock. Realising these ambitions requires strong input from research and academia, and improved coordination between policymakers and startups. The scaling wall highlights systemic innovation gaps where sustained support is needed, not only in hardware but also in talent development, safety research, and efficient model design.
Way Forward
To truly harness AI’s transformative power, India must prioritise policy actions and ecosystem shifts that support smarter, safer, and context-rich research through the following measures:
- Driving Efficiency and Compute Innovation: Instead of relying on brute-force scaling, India should invest in research and startups working on efficient architectures, energy-conscious training methods, and compute optimisation.
- Investing in Multimodal and Diverse Data: While indigenous datasets are being developed under the India AI Mission through AI Kosha, they must be ethically sourced from speech, images, video, sensor data, and regional content, apart from text, to enable context-rich AI models truly tailored to Indian needs.
- Addressing Core Problems for Trustworthy AI: LLMs offered by all major companies, like OpenAI, Grok, and Deepseek, have the problem of unreliability, hallucinations, and biases, since they are primarily built on scaling large datasets and parameters, which have inherent limitations. India should invest in capabilities to solve these issues and design more trustworthy LLMs.
- Supporting Talent Development and Training: Despite its substantial AI talent pool, India faces an impending demand-supply gap. It will need to launch national programs and incentives to upskill engineers, researchers, and students in advanced AI skills such as model efficiency, safety, interpretability, and new training paradigms
Conclusion
The AI scaling wall debate is a reminder that the future of LLMs will depend not on ever-larger models but on smarter, safer, and more sustainable innovation. A new generation of AI is approaching us, and India can help shape its future. The country’s AI Mission and startup ecosystem are well-positioned to lead this shift by focusing on localised needs, efficient technologies, and inclusive growth, if implemented effectively. How India approaches this new set of challenges and translates its ambitions into action, however, remains to be seen.
References
- https://blogs.nvidia.com/blog/ai-scaling-laws/
- https://www.marketingaiinstitute.com/blog/scaling-laws-ai-wall
- https://fortune.com/2025/02/19/generative-ai-scaling-agi-deep-learning/
- https://indiaai.gov.in/
- https://www.deloitte.com/in/en/about/press-room/bridging-the-ai-talent-gap-to-boost-indias-tech-and-economic-impact-deloitte-nasscom-report.html
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Introduction
The rapid advancement of technology, including generative AI, offers immense benefits but also raises concerns about misuse. The Internet Watch Foundation reported that, as of July 2024, over 3,500 new AI-generated child sexual abuse images appeared on the dark web. The UK’s National Crime Agency records 800 monthly arrests for online child threats and estimates 840,000 adults as potential offenders. In response, the UK is introducing legislation to criminalise AI-generated child exploitation imagery, which will be a part of the Crime and Policing Bill when it comes to parliament in the next few weeks, aligning with global AI regulations like the EU AI Act and the US AI Initiative Act. This policy shift strengthens efforts to combat online child exploitation and sets a global precedent for responsible AI governance.
Current Legal Landscape and the Policy Gap
The UK’s Online Safety Act 2023 aims to combat CSAM and deepfake pornography by holding social media and search platforms accountable for user safety. It mandates these platforms to prevent children from accessing harmful content, remove illegal material, and offer clear reporting mechanisms. For adults, major platforms must be transparent about harmful content policies and provide users control over what they see.
However, the Act has notable limitations, including concerns over content moderation overreach, potential censorship of legitimate debates, and challenges in defining "harmful" content. It may disproportionately impact smaller platforms and raise concerns about protecting journalistic content and politically significant discussions. While intended to enhance online safety, these challenges highlight the complexities of balancing regulation with digital rights and free expression.
The Proposed Criminalisation of AI-Generated Sexual Abuse Content
The proposed law by the UK criminalises the creation, distribution, and possession of AI-generated CSAM and deepfake pornography. It mandates enforcement agencies and digital platforms to identify and remove such content, with penalties for non-compliance. Perpetrators may face up to two years in prison for taking intimate images without consent or installing equipment to facilitate such offences. Currently, sharing or threatening to share intimate images, including deepfakes, is an offence under the Sexual Offences Act 2003, amended by the Online Safety Act 2023. The government plans to repeal certain voyeurism offences, replacing them with broader provisions covering unauthorised intimate recordings. This aligns with its September 2024 decision to classify sharing intimate images as a priority offence under the Online Safety Act, reinforcing its commitment to balancing free expression with harm prevention.
Implications for AI Regulation and Platform Responsibility
The UK's move aligns with its AI Safety Summit commitments, placing responsibility on platforms to remove AI-generated sexual abuse content or face Ofcom enforcement. The Crime and Policing Bill is expected to tighten AI regulations, requiring developers to integrate safeguards against misuse, and the licensing frameworks may enforce ethical AI standards, restricting access to synthetic media tools. Given AI-generated abuse's cross-border nature, enforcement will necessitate global cooperation with platforms, law enforcement, and regulators. Bilateral and multilateral agreements could help harmonise legal frameworks, enabling swift content takedown, evidence sharing, and extradition of offenders, strengthening international efforts against AI-enabled exploitation.
Conclusion and Policy Recommendations
The Crime and Policing Bill marks a crucial step in criminalising AI-generated CSAM and deepfake pornography, strengthening online safety and platform accountability. However, balancing digital rights and enforcement remains a challenge. For effective implementation, industry cooperation is essential, with platforms integrating detection tools and transparent reporting systems. AI ethics frameworks should prevent misuse while allowing innovation, and victim support mechanisms must be prioritised. Given AI-driven abuse's global nature, international regulatory alignment is key for harmonised laws, evidence sharing, and cross-border enforcement. This legislation sets a global precedent, emphasising proactive regulation to ensure digital safety, ethical AI development, and the protection of human dignity.
References
- https://www.iwf.org.uk/about-us/why-we-exist/our-research/how-ai-is-being-abused-to-create-child-sexual-abuse-imagery/
- https://www.reuters.com/technology/artificial-intelligence/uk-makes-use-ai-tools-create-child-abuse-material-crime-2025-02-01/
- https://www.financialexpress.com/life/technology-uk-set-to-ban-ai-tools-for-creating-child-sexual-abuse-images-with-new-laws-3735296/
- https://www.gov.uk/government/publications/national-crime-agency-annual-report-and-accounts-2023-to-2024/national-crime-agency-annual-report-and-accounts-2023-to-2024-accessible#part-1--performance-report
