Before the pandemic, the daily grind for many revolved around the traditional commute to physical workplaces. A typical week often involved a flurry of activity, marked by constant calls, high-stakes client presentations, and the familiar rhythm of Monday blues, packed with back-to-back meetings. Fridays, however, offered a lighter note with team bonding activities, fostering camaraderie and a sense of connection, and it was this fun part that most people missed during the infamous nationwide lockdowns globally.
This routine, while standard, was undeniably exhausting for a significant portion of the workforce. Imagine those who endured long commutes, immediately transitioning into demanding roles as corporate employees, then returning home to wear the hats of parents and caregivers. The juggling act was constant, a testament to their resilience. A fortunate few even had the coveted flexibility of working from home one or two days a week, a luxury that offered a brief reprieve and a chance to recalibrate their work-life balance.
Then, seemingly overnight, the COVID-19 pandemic swept across the globe, thrusting the entire world into an unprecedented and largely unknown territory: the all-in-remote workplace. This was a seismic shift, forcing companies and employees alike to adapt at an astonishing pace. Homes transformed into offices, virtual meetings became the norm, and the boundaries between personal and professional life blurred in ways previously unimaginable. It is a period etched into our collective memory that we are unlikely to forget anytime soon. Now that it’s all behind us, hybrid or all-remote workplaces have become the new normal. With this transition, a new fear was unlocked. The dependence on vendors for conducive digital engagement in workplaces means vulnerabilities to external threats that can expose the system to unwarranted malware. This is a hurdle that can be overcome only with a stable third-party risk management program. The pandemic drastically altered TPRM programs, pushing them to adapt from static, annual reviews to more dynamic approaches. Here are three key shifts:
1. Continuous Monitoring and Real-Time Visibility
- Shift from periodic checks: Before, TPRM relied on infrequent, often manual assessments of third parties.
- Embrace of technology: Now, programs use AI and automation for continuous monitoring.
- Immediate alerts: This provides real-time data on vendor performance, financial health, and cybersecurity, allowing for immediate alerts and proactive intervention.
2. Operational Resilience and Supply Chain Diversification
- Addressing vulnerabilities: The pandemic exposed the fragility of single-source supply chains.
- Focus on resilience: TPRM now evaluates a vendor’s ability to withstand disruptions like natural disasters, cyberattacks, or geopolitical events.
- Mitigating concentration risk: Programs encourage supply chain diversification to build a more robust and adaptable ecosystem.
3. Holistic Risk Assessment, Including ESG
- Beyond traditional risks: TPRM has expanded beyond just financial and security risks.
- Integration of ESG: There’s a growing emphasis on a third party’s Environmental, Social, and Governance (ESG) practices.
- Broader evaluations: This means assessing ethical practices, environmental impact, and social responsibility to protect an organization’s reputation and ensure compliance in an increasingly interconnected world.
Summing Up:
As we progress and AI takes precedence for BPA workflow, a reliable TPRM software is a savior for letting business-as-usual phases continue without hindrances.
