Topic

Third-Party Vendor Risk

Third-party vendor risk refers to the governance and compliance challenges that arise when organizations rely on external providers for AI services, tools, data, or infrastructure. For enterprises, managing these risks is critical because vendors may introduce security vulnerabilities, data privacy violations, model bias, or operational failures that directly impact the organization's AI systems and regulatory obligations. Effective vendor risk management requires due diligence processes, contractual safeguards, ongoing monitoring, and clear accountability frameworks to ensure third-party AI solutions meet the organization's governance standards and compliance requirements.

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ResearchGlobal2026-07-08

Eight Governance Themes from 2025 Reveal Widening Gaps Between Regulatory Ambition and Enterprise Readiness

A year-in-review analysis by AI governance practitioner Oliver Patel identifies eight major governance developments from 2025, including new US state legislation, ISO/IEC 42006 audit standards, and successive EU AI Code of Practice drafts. The review highlights that compliance teams are now operating across an increasingly fragmented regulatory landscape where frontier AI transparency requirements, international audit standards, and state-level disclosure obligations are advancing at uneven speeds. Third-party AI vendor risk programs and model risk governance functions face the most immediate pressure to adapt.

ISO/IEC 42006 EU AI Code of Practice frontier AI US state AI laws audit standards multi-jurisdiction compliance third-party vendor risk regulatory fragmentation