Third-Party Risk Management in 2025: Key Drivers and Trends

Risk is an integral component of business operations, and organizations that fail to manage it effectively may find it difficult to remain competitive. Risk within an organization is shaped by multiple factors, including cyber threats, third-party vulnerabilities, and regulatory compliance.

These risks are further influenced by both internal and external dynamics, such as market shifts, geopolitical events, and technological advancements.

As risks evolve and become more complex, organizations must proactively manage them. This is where Governance, Risk Management, and Compliance (GRC) play an important role. GRC provides an essential framework that enables organizations to navigate uncertainty, maintain operational resilience, and achieve strategic objectives.

Furthermore, a strong GRC approach not only enhances an organization’s ability to respond to disruptions promptly but also enables businesses to proactively identify risks before they escalate, ensuring operational continuity.

What are the key drivers shaping Third-Party Risk Management trends in 2025?

• Navigating regulatory complexity: Laws and regulations are changing at a fast pace, making it difficult for organizations to stay compliant and up to date. Geopolitical risks and conflicts further contribute to this complexity, creating an environment of constant change.
  
  Businesses do not operate in isolation - every element is interconnected, and regulatory shifts can have widespread impacts across industries and supply chains. A key example is the rise of ESG (Environmental, Social, and Governance) regulations, which require businesses to quickly adapt to standards on environmental and social impact, driven by the growing focus on sustainability. Success in navigating regulatory chaos depends on an organization’s ability to stay agile and proactively respond to regulatory shifts.

• Different regulatory approaches: Laws and regulations vary across jurisdictions, creating challenges for businesses operating internationally. For instance, the European Union, the United Kingdom, and the United States each have distinct regulatory frameworks.
  
  A key example is the EU’s Digital Operational Resilience Act (DORA), introduced to address growing concerns about IT-related disruptions, particularly in the financial sector. Additionally, the upcoming EU AI Act, set to be enforced in phases starting from November 2024, introduces strict requirements for AI systems, particularly for high-risk applications used in critical infrastructure, employment, and financial services​.
  
  Organizations must now extend their third-party risk management strategies to ensure that vendors and partners comply with AI governance requirements, reducing exposure to non-compliance penalties and safeguarding ethical AI usage across their supply chain​. The global nature of these laws further complicates compliance, requiring businesses to adapt to diverse regulatory approaches across multiple regions.
  
  
• Cross-Cultural Challenges: Managing third-party relationships is a critical aspect of governance, as the businesses you partner with shape your reputation. In international environments, cultural differences can create challenges, with cross-cultural misunderstandings potentially leading to conflicts and lost opportunities.
  
  For example, perceptions of ethical business practices vary across countries, making compliance with international anti-corruption laws more complex. Navigating these nuances requires organizations to develop a culturally aware approach to third-party risk management, ensuring alignment with both global standards and domestic business practices.

Addressing the Drivers of Third-Party Risk Management Trends

Traditionally, third-party risk management has focused on learning from the past, but organizations must also look ahead to proactively mitigate future threats.

Navigating third-party risk without a clear strategy can be like constructing a complex system without a blueprint - disjointed and ineffective. Within organizations, different departments, such as IT and procurement, often manage separate regulatory requirements that are not integrated, leading to inefficiencies and financial losses.

This highlights the need for a unified approach, integrating risk management across departments and regulations to improve efficiency.

What are the key Third-Party Risk Management trends for 2025?

• Resilience and Agility: The ability to recover from disruptions and maintain operations is more critical than ever. In 2025, organizations are exploring ways to quickly identify obstacles to minimize setbacks and adapt to market changes.

• Strategic Governance of Third-Party Relationships: Organizations are increasingly prioritizing stronger governance frameworks to ensure that third-party relationships actively contribute to business strategy and performance goals.
  
  In 2025, the trend is shifting towards a more holistic approach - where managing both critical and non-critical vendors is not just about compliance, but about driving long-term value and resilience.

• Strategic Coordination: Effective third-party risk management requires clear leadership and coordination across departments. Organizations are increasingly focusing on identifying the right tools and leadership structures to ensure a collaborative approach that aligns with various regulatory frameworks.
  
  Without a well-defined strategy and supporting technology, risk management efforts can become fragmented.
  
  To drive efficiency, businesses are working to establish strong coordinators who can streamline efforts across all stakeholders and regulations.

• Third-Party Accountability and Engagement: Third-party risk management goes beyond oversight - it requires accountability when issues arise. Organizations face growing pressure to ensure third parties meet compliance and security standards, reinforcing the need for stronger oversight and proactive risk management.
  
  At the same time, simplifying engagement processes is crucial for more intuitive third-party interactions. The demand for interconnected networks is rising, streamlining relationships and enhancing collaboration.
  
  A key focus is increasing third-party participation through efficient risk assessment models, such as the 'assess once, share multiple times' approach, which is particularly valuable in global risk exchange.
  
  
• Risk Intelligence: Organizations are increasingly shifting towards a more strategic approach to data utilization, recognizing that the true value of data lies in extracting actionable insights. It is about moving beyond data collection to intelligent risk analysis - leveraging relevant information to enhance agility, improve decision-making, and drive proactive risk management.
  
  
• Innovating with Artificial Intelligence (AI) in Third-Party Risk Management: Artificial Intelligence is transforming third-party risk management by enabling data-driven decision-making and automating repetitive tasks. Organizations are rearchitecting their approaches, frameworks, and systems to integrate AI and other advanced technologies, enhancing efficiency and adaptability. While AI improves productivity and streamlines risk management, human oversight remains essential to ensure accuracy, context, and strategic alignment.

How SureCloud Can Help

Understanding both the current and future state of your third-party risk strategy is essential. Many organizations still rely on siloed systems and manual spreadsheets, lacking a clear roadmap and action plan.

This makes it difficult to adapt to evolving trends and regulatory changes. Implementing an integrated third-party risk strategy focused on efficiency, effectiveness, resilience, and agility is key to staying ahead.

SureCloud’s integrated GRC platform offers comprehensive support for organizations navigating the third-party trends in 2025.

From automating IT risk assessments to enabling continuous third-party risk management and resilience testing, SureCloud equips businesses with the necessary tools to stay ahead of emerging challenges.

SureCloud’s platform ensures that your business is not only compliant but also resilient, providing peace of mind in a complex landscape.