Best 5 third-party risk management software for due diligence assessments

Nowadays, companies often work closely with third parties like vendors, suppliers, and contractors. While these partnerships are important for growth, innovation and efficiency, they also bring potential risks. 

These risks, such as data breaches or failure to meet regulations, can cause serious problems if not properly managed. Therefore it is key to understand the risks introduced by third-party collaborations and take actions to minimise these risks. This can be achieved by performing due diligence. 

Below, we’ve listed the top 5 TPRM software tools designed to help with due diligence assessments, specifically.

1. 3rdRisk
2. Prevalent
3. OneTrust
4. Venminder
5. AuditBoard

But before we dive into these tools, let’s quickly recap what TPRM software is and how it’s commonly used for due diligence assessments.

Quick recap: Third-party risk management software for due diligence assessments

Third-party risk management (TPRM) software helps organisations to get in control of third-party risk by providing due diligence and monitoring capabilities. 

Due diligence is the foundation of effective third-party risk management. It involves a thorough evaluation of potential partners before entering into a business relationship and ongoing monitoring afterward. 

Key risk domains to consider in due diligence assessments include:

1. Regulatory compliance
2. Cybersecurity posture
3. Financial health 
4. Reputational risk 
5. Operational capabilities

When you’re picking TPRM software for due diligence assessments, there are a number of things you should be looking out for. Let’s take a closer look at those factors.

Due diligence risk assessment software: What to look out for

When selecting due diligence software for third-party risk management, it is essential to choose a tool that is scalable and capable of handling recurring tasks such as preparing, sending and reviewing due diligence assessments efficiently.

More importantly, the platform should prioritise user engagement, as the success of due diligence assessments heavily depends on the quality of information provided and the effectiveness of follow-up actions.

Here are the most important aspects to consider when picking risk assessment software:

• Is it multidisciplinary?
• Does it offer automated workflows?
• Does it have AI-powered features?
• Is the interface user-friendly?
• Does it let you brand the platform?
• Does it offer best-practice content?
• How robust is its security?

These features will help you choose a due diligence risk assessment tool that not only covers all essential areas but also enhances the overall efficiency and effectiveness of your third-party risk management efforts.

The top 5 TPRM software tools for due diligence assessments

Now, let’s look at the best 5 TPRM software tools for due diligence assessments in 2024. Please note that this list isn’t necessarily ranked, nor exhaustive. Feel free to reach out to us if you have any software platform you feel we should list.

1. 3rdRisk

Based in Amsterdam, the Netherlands, 3rdRisk – that’s us, by the way – offers a cutting-edge platform specifically designed for third-party due diligence assessments and real-time supplier monitoring. 

Developed by risk professionals with hands-on experience, 3rdRisk aims to simplify every aspect of preparing, sending, and reviewing due diligence assessments, making it both efficient and user-friendly.

What sets 3rdRisk apart is its strong emphasis on user engagement. The platform features intuitive workflows, explainer videos, and a fully branded experience to ensure that users remain engaged throughout the process. 

3rdRisk also offers a virtual assistant integrated with Microsoft Teams, featuring a customisable mascot, and leverages AI to accelerate the due diligence process. This approach not only boosts efficiency but also makes third-party risk management more engaging and less of a burden.

Key features:‍

• Comprehensive risk coverage for all risk domains and frameworks 
• Comes with best practice content for DORA, CSRD, CSDDD, and NIS2.
• Intelligent inherent risk profile wizard to prioritise third parties
• Assessment scheduler
• User-friendly, secure and collaborative supplier portal
• AI-powered assessment and document analyser
• Fully branded user experience (platform, supplier portal, e-mails)

Why choose 3rdRisk? 

3rdRisk stands out as the most flexible and user-friendly solution for third-party due diligence assessments. Packed with innovative features, it automates the due diligence process while ensuring high user engagement. 

Its intelligent use of AI and seamless integration with Microsoft Teams offer excellent value for money and support rapid implementation, typically within 10 days. This makes it the top choice for organisations looking to enhance their third-party risk management practices.

2. Prevalent

Prevalent is a TPRM tool that provides a unified approach to managing third-party risks, with a particular emphasis on cybersecurity and privacy. The platform offers standardised vendor risk assessments and ongoing monitoring capabilities.

Key features:

• Vendor assessment library
• Unified risk and compliance register
• Vendor risk remediation workflow
• Automated actions with playbooks
• Marketplace for integrations

Why choose Prevalent?

Prevalent networks provide on-demand risk intelligence for over 10,000 vendors, which may speed up the due diligence process for some organisations. The platform and its features are comprehensive, though may not excel in customisation and user experience. 

3. OneTrust

OneTrust is a leader in privacy, security, and third-party risk management. The platform offers a wide range of tools designed to help organisations manage their third-party risks, with a particular focus on data privacy and regulatory compliance. 

OneTrust’s TPRM solution is customisable, making it suitable for organisations in various industries, from finance to healthcare.

Key features:

• Centralised third-party inventory
• Automated risk mitigation
• Inherent risk profiling 
• Automated recordkeeping

Why choose OneTrust? 

OneTrust’s focus on privacy and compliance makes it a reasonable choice for organisations with strict regulatory requirements looking to demonstrate compliance. However, its automation, integrations, and user experience for both internal users and suppliers may not be as advanced or mature as those offered by other specialised solutions. 

4. Venminder

Venminder’s platform offers a wide range of tools designed to simplify the due diligence process, during vendor onboarding and afterwards. Venminder is regarded strong in its customer service capabilities, with in-house third-party risk management experts.

Key features:‍

• Risk profiling
• Risk assessments
• Questionnaires
• Oversight management
• Issue management

Why choose Venminder?

Venminder is a solid TPRM tool to perform due diligence assessments. Its focus on strong customer support makes it suitable for smaller organisations. The user experience and interface could be regarded as a bit outdated and offers limited customisation options compared to other solutions. It also lacks a virtual assistant to help users by taking over repetitive tasks. 

5. AuditBoard

AuditBoard offers an integrated risk management platform that includes a TPRM module. The platform is designed to help organisations manage third-party risks alongside internal audit and compliance activities, making it an appropriate solution for risk management.

Key Features:

• Vendor evaluation and onboarding
• Vendor tiering (segmenting based on risk)
• Vendor risk assessments
• Mitigation planning

Why choose AuditBoard? 

AuditBoard is a reliable platform for audit and compliance professionals focused on regulatory and compliance tasks. However, its capabilities for due diligence assessments are not as advanced as those offered by some of its competitors, which means that the entire process of preparing, sending, reviewing and reporting on due diligence assessments can take more time and may feel less intuitive for both internal users as suppliers. 

3rdRisk: Your best bet at doing better on your third-party due diligence assessments

While each platform discussed has its advantages and limitations, 3rdRisk sets itself apart as the premier choice for third-party due diligence assessments. 

With a focus on excellent user experience, 3rdRisk automates the due diligence process to reduce the burden for both suppliers and internal users. It keeps user engagement high through intelligent AI features and seamless integration with amongst others Microsoft Teams.

This combination of capabilities not only delivers excellent value but also supports quick implementation (within 10 days!), making 3rdRisk the top option for those aiming to enhance their third-party due diligence process in the most effective and efficient way.

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