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Third-Party Risk Management
Third-party risk management refers to the processes and controls organizations implement to assess, monitor, and mitigate risks posed by external vendors, service providers, and partners that have access to data or systems. In enterprise AI governance, this becomes critical as companies increasingly rely on third-party AI models, datasets, and tools that may introduce compliance gaps, data security vulnerabilities, or biased outputs beyond direct organizational control. Effective third-party risk management ensures vendors meet required standards for data privacy, model transparency, security, and regulatory compliance, protecting the enterprise from cascading failures or violations originating outside its boundaries.
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