Key Trends in Third-Party Risk Management (TPRM) for 2025

Harshita Sonkar
Harshita Sonkar
Intern, Policy & Advocacy, CyberPeace
PUBLISHED ON
Jul 4, 2025
10

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 It also guarantees dynamic risk rating instead of relying on outdated questionnaire-based scoring.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 

PUBLISHED ON
Jul 4, 2025
Category
TAGS
No items found.

Related Blogs