The postings on this site are my own and do not necessarily represent FTI Consulting’s positions, strategies or opinions.
Welcome back to the grand circus that is Third-Party Risk Management! So far, we’ve tackled everything from vendor tantrums to full-blown disasters, but today, it’s time to shine a spotlight on the real stars of the show—the often-overlooked heroes who keep your business from unraveling at the seams: your TPRM team. Yes, these unsung warriors are the ones standing between your organization and the chaos of vendor risk, and it’s high time they got the recognition they deserve.
The Unsung Heroes: Who’s Really Holding the Line?
Let’s be honest—when you think of corporate heroes, your mind probably jumps to the CEOs, the innovators, or even the top salespeople who bring in the big bucks. But while those folks are busy taking their victory laps, the TPRM team is hard at work, sifting through contracts, analyzing risks, and putting out fires before they start. They’re the invisible hands that keep the machine running smoothly, and yet, how often do they get the credit?
Probably as often as you thank your Wi-Fi for not crashing during a Zoom call—not nearly enough. But here’s the thing: without these dedicated risk managers, your carefully crafted strategies and partnerships could crumble faster than a house of cards in a windstorm.
The Thankless Job: Why TPRM Is the Toughest Gig Around
Why is TPRM such a thankless job? It’s simple: when everything is running smoothly, no one notices. Your vendors are delivering on time, compliance issues are nowhere in sight, and everyone assumes it’s just business as usual. But here’s the truth—when things are quiet, it’s because your TPRM team is working tirelessly behind the scenes to ensure that every potential risk is being managed and mitigated.
But the moment something goes wrong? Suddenly, all eyes are on the TPRM team, demanding to know why they didn’t foresee the catastrophe, why they didn’t prevent it, and how they plan to fix it—yesterday. It’s a bit like being a goalie in soccer: you make a hundred saves, but the one time the ball gets past you, everyone wonders if you’re asleep on the job.
Building the Dream Team: What It Takes
So, what does it take to build a strong TPRM team? First and foremost, you need people who are detail-oriented, proactive, and unflappable in the face of constant uncertainty. But more than that, you need a team that can wear multiple hats—part detective, part diplomat, part firefighter, and all professional worrywarts.
- The Detective: This team member has a knack for digging deep, unearthing potential risks and hidden vulnerabilities in your vendor relationships. They’re the ones who ask the tough questions, read the fine print, and connect the dots that others might miss.
- The Diplomat: Every TPRM team needs someone who can manage vendor relationships with the finesse of an ambassador at a peace negotiation. They know how to keep things running smoothly, even when the vendor starts acting like a petulant child or a rogue state.
- The Firefighter: When a crisis hits, this is the person who jumps into action. They’re calm under pressure, quick to respond, and ready to tackle whatever emergency comes their way. They’re not just putting out fires—they’re preventing them from spreading.
- The Worrywart: Every team needs that one person who’s always thinking about what could go wrong. While everyone else is focused on the present, this person is busy imagining every possible disaster that could occur—and figuring out how to prevent it.
Recognizing the Team: A Little Appreciation Goes a Long Way
Building a strong TPRM team is essential, but so is recognizing their efforts. These are the people saving your company from potential catastrophe, often without any fanfare. So, maybe it’s time to give them the credit they deserve. A simple acknowledgment can go a long way in keeping morale high and reminding these unsung heroes that their work isn’t just important—it’s crucial.
Remember, while the rest of the company might be focused on growth, innovation, and customer satisfaction, your TPRM team is the one ensuring that those goals aren’t derailed by unforeseen risks. They’re the safety net, the contingency planners, the ones who ensure that when you take a leap of faith with a new vendor, you’re not jumping blind.
Transitioning to Strategy: The Bigger Picture
As we wrap up our spotlight on the TPRM team, it’s time to transition into the broader strategic picture. You’ve got the right people in place, but how do you leverage their skills to ensure your company stays ahead of potential risks? That’s where strategic planning comes in—taking the insights, foresight, and vigilance of your TPRM team and turning it into a proactive, long-term approach.
In my next post, I’ll explore “Strategic Planning in TPRM: Chess, Not Checkers,” where we’ll discuss how to take a long-term view of third-party risk management and stay several steps ahead of potential threats.
Until then, let’s take a moment to appreciate the TPRM team—the forgotten heroes who keep the circus from turning into chaos. Because in the world of risk management, it’s not just about reacting to what’s in front of you, but anticipating what’s around the corner.
See you in the next act!