3rdRisk vs Formalize: Which risk and compliance platform is right for you?

Introduction

Third-party risks are increasing in scale and complexity. At the same time, compliance requirements across Europe are becoming more stringent, with regulations such as DORA, NIS-2, GDPR, and CSRD pushing organisations to rethink how they manage risk and compliance.

Technology is indispensable in this landscape, but selecting the right tool can be challenging.

In this article, we provide a detailed comparison of 3rdRisk and Formalize, two European providers of risk and compliance management software. Whether you are focused on third-party risk, regulatory compliance, or internal control, this comparison will help you make an informed decision.

About the companies

Both 3rdRisk and Formalize are European-based solutions, offering a strong alternative to US-centric risk and compliance tools.

3rdRisk: Risk and compliance across the value chain

Founded in Amsterdam, 3rdRisk is a modern, cloud-based platform designed for managing third-party risk, internal control, and regulatory compliance. It supports risk domains such as cybersecurity, ESG, operational resilience, and legal compliance—enabling organisations to assess, monitor, and manage supplier risk from a single, intuitive interface.

What sets 3rdRisk apart:

• Gamification to engage internal stakeholders and suppliers
• AI-powered features for risk profiling, document analysis, and assessment summaries
• Rapid implementation with prebuilt frameworks and best-practice templates
• Strong partner network with firms like Deloitte, Protiviti, and NTT DATA
• Compliance-ready for EU frameworks including DORA, NIS-2, CSRD, CSDDD, and more

Formalize: Evolving from whistleblowing to compliance management

Headquartered in Aarhus, Denmark, Formalize began as a specialist in whistleblower compliance with its award-winning Whistleblower Software. Building on this success, it has expanded into broader governance, risk, and compliance (GRC) capabilities, now offering functionality for:

• Policy and risk management
• Internal controls
• Supplier risk assessments
• Incident and task handling
• Governance reporting and trust centres

Formalize is known for strong customer support and a growing presence in the European compliance software market.

Comparison: 3rdRisk vs. Formalize

Choosing the right platform depends on your organisation’s needs. Below, we compare the two platforms across key criteria:

1. Scope and focus

• 3rdRisk: Offers an all-in-one platform for third-party risk, internal controls, and compliance management. Ideal for organisations managing one or multiple regulatory frameworks across diverse risk domains.
• Formalize: Originally focused on whistleblowing, now expanding into a broader compliance platform with a typical focus on ISO 27001, GDPR, NIS-2, and DORA use cases.

2. User experience and stakeholder engagement

• 3rdRisk: Designed for both compliance teams and business stakeholders, with gamification, chatbot assistance, and custom branding to drive adoption and engagement.
• Formalize: User-friendly interface primarily tailored to compliance professionals. Fewer options for customisation and stakeholder activation.

3. Integrations

• 3rdRisk: Offers 60+ integrations, including procurement systems, GRC tools, and external data sources (e.g., for adverse media, sanctions, and security ratings).
• Formalize: Offers native integrations and an API, but lacks transparency on specific integrations available.

4. Client base

• 3rdRisk: Trusted by over 1,000 risk professionals, with clients including ING Bank, NTT DATA, Selfridges Group, Deloitte, and HEMA.
• Formalize: Clients include McDonald’s and Burger King, though it’s unclear which modules are in use (e.g., whistleblowing vs. full compliance suite).

5. Capabilities

• 3rdRisk: Comprehensive third-party risk and compliance operations, including supplier onboarding, contract lifecycle management, control testing, risk management and assessment automation.
• Formalize: Strong in GRC basics such as risk registration, control management, incident response, and policy management.

6. Artificial intelligence (AI)

• 3rdRisk: AI is embedded across the platform, supporting risk profiling, document analysis, and summarisation of assessments. Additional AI features are in development.
• Formalize: States an AI policy, but offers limited detail on how AI is actively used in the platform today.

7. Regulatory compliance readiness

• 3rdRisk: Natively supports European regulations including DORA, NIS-2, SOC 2, GDPR, CSRD, CSDDD, and the EU Deforestation Regulation, amongst others.
• Formalize: Covers GDPR, ISO 27001, NIS-2, DORA, SOC 2, and ISMS, with a strong heritage in whistleblowing compliance.

8. Partner ecosystem

• 3rdRisk: Collaborates with top-tier firms like Deloitte, Protiviti, NTT DATA, and Eraneos for global implementation and support.
• Formalize: Has a partner program, but as of today limited public information available on the partner network.

9. Implementation and time to value

• 3rdRisk: Fast time-to-value with go-live in under two weeks, supported by prebuilt templates, frameworks, and expert partner guidance.
• Formalize: Offers guided setup for specific use cases (e.g. DORA), with built-in policies, tasks, and controls to speed up deployment.

Conclusion

3rdRisk is the right choice for organisations seeking a future-proof, AI-driven, and compliance-ready platform that goes beyond checklists and enables real engagement across the entire value chain.

If you're looking for:

• Modern interface in your own corporate stylesheet
• Advanced third-party risk capabilities
• Fast implementation
• Seamless supplier collaboration
• AI-powered risk management
• Multi-framework compliance support
• Strong partner support

...then 3rdRisk offers a clear competitive advantage.

Formalize may be suitable for organisations focused purely on GRC and policy-driven compliance, particularly those with compliance focus or a strong emphasis on whistleblowing.

Ready to explore 3rdRisk?

Watch the video below or book a free demo and see how 3rdRisk can simplify and streamline your third-party risk and compliance operations.