Evolution of TPRM: Mitratech Exec Talks Predictions for 2025
As organisations continue to navigate an increasingly interconnected global economy, the attack surface has opened them up to attacks like never before.
One area which has proved increasingly difficult is the risks posed by third parties.
Whether it is software or as a service, a third party opens up an avenue into enterprise security in ways that have proved challenging.
The complexity of modern supply chains and partnerships means that companies must look beyond internal operations to ensure resilience and compliance across their ecosystems.
Thus, the importance of robust third-party risk management (TPRM) frameworks has never been clearer.
2024 marked a pivotal year for advancements in TPRM, with AI and regulatory changes driving significant transformations. But what lies ahead in 2025?
To find out more, we spoke with Alastair Parr, Executive Director GRC Solutions at Mitratech, about the trends shaping the future of TPRM.
Leveraging AI
The integration of AI into TPRM practices saw rapid adoption in 2024, and this trend shows no signs of slowing down.
According to Alastair, AI will be instrumental in automating risk assessments and enhancing real-time monitoring.
“AI-driven systems will enable organisations to use large language models (LLMs) to analyse extensive datasets, identifying patterns that could indicate emerging risks. This will significantly improve decision-making and the speed at which potential issues are detected,” he explains.
This capability means businesses can monitor their third-party networks more effectively, identifying discrepancies between assessment responses and supporting evidence.
With enhanced workflows for documentation and analysis, organisations will be better equipped to pre-empt risks rather than react to them.
The application of AI doesn’t just reduce operational burdens; it fundamentally transforms how risks are managed.
By focusing on predictive and comparative insights, companies can adopt a proactive approach, staying one step ahead in an increasingly volatile market.
Expanding regulation and resilience
As governments worldwide tighten regulations, companies are expected to meet heightened due diligence standards.
Alastair highlights how frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) will push businesses to scrutinise the environmental and ethical impacts of their supply chains.
“These regulations will harmonise requirements across regions, compelling organisations to assess third-party resilience and sustainability metrics like carbon footprints and labour practices,” he says.
Even the Digital Operational Resilience Act (DORA) is causing operational resilience ripple effects in the financial sector in the US.
Together with global ESG mandates, these regulations demand a more cohesive and transparent approach to assessing third-party risks.
By embedding regulatory compliance into the heart of risk management, companies can build a more robust foundation for navigating external pressures.
This shift will not only strengthen partnerships but also enhance stakeholder confidence in the organisation’s long-term strategy.
Reactive to embedded risk ownership
Historically, TPRM has been the domain of IT security teams. However, Alastair predicts a paradigm shift in 2025, as third-party risk becomes an enterprise-wide priority.
“2025 will be a transformative year, with risk ownership shifting to enterprise risk teams. This transition will allow TPRM to integrate more seamlessly into broader business processes,” he notes.
With procurement teams playing a more active role, activities like vendor selection, due diligence, and offboarding will align more closely with risk management practices.
This cultural shift will foster collaboration across departments, enabling organisations to achieve more cohesive and effective risk outcomes.
Centralised governance, risk management, and compliance (GRC) systems will also play a crucial role in this evolution.
“This integrated perspective is vital for non-technical audiences, allowing them to grasp risk implications clearly and make informed decisions,” Alistair explains.
Preparing for a resilient future
As third-party cybersecurity incidents continue to rise, organisations must also consider the aggregated risks across their ecosystems.
Real-time monitoring and comprehensive data analysis will become essential for maintaining business resilience in the face of emerging threats.
Looking ahead, TPRM is poised to move from a reactive function to a strategic enabler, driven by technological innovation, regulatory frameworks, and cultural transformation.
By adapting to these changes, businesses can position themselves not only to mitigate risks but also to thrive in an increasingly interconnected world.
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