Third-Party Risk Management

1. Training Introduction

The Third-Party Risk Management Training is a comprehensive and practical program designed to equip organizations and professionals with the knowledge, frameworks, and tools necessary to identify, assess, mitigate, and monitor risks associated with third-party relationships, including suppliers, contractors, partners and service providers.

Third-party risks—such as financial, operational, reputational, regulatory, and compliance risks—pose significant challenges for organizations across all sectors. Effective management of these risks is essential for organizational integrity, sustainability, and resilience. This training combines theoretical frameworks with practical application and includes a 1-Day Tour/Site Visit for real-world exposure.

The program spans 4 days (3 hours per day), focusing on risk identification, mitigation strategies, monitoring and governance.

2. Training Objectives

By the end of the training, participants will be able to:

1. Understand the scope and importance of third-party risk management.
2. Identify risks associated with suppliers, contractors, and partners.
3. Apply risk assessment frameworks and tools for third-party evaluation.
4. Implement mitigation strategies to manage and reduce risks.
5. Strengthen monitoring, reporting, and governance mechanisms.
6. Develop actionable third-party risk management policies and plans.

3. Targeted Group

This training is suitable for:

• Senior and middle-level managers
• Procurement and supply chain officers
• Compliance and risk management professionals
• Finance and audit officers
• Project managers and coordinators
• Legal and contracts officers
• Board members and directors
• NGO and development organization staff
• Public sector officials and regulatory personnel

4. Course Duration

• Duration: 4 Days
• Daily Contact Time: 3 Hours per Day
• Total Training Hours: 12 Hours
• Additional Component: 1 Day Tour/Site Visit

5. Training Methodology

The program uses interactive, participatory, and practical approaches:

• Interactive lectures
• Group discussions
• Case studies and scenario analysis
• Risk mapping and assessment exercises
• Role plays and simulations
• Policy and framework review exercises
• Experience sharing
• Practical tools for risk monitoring
• Tour/Site Visit for real-world exposure
• Question & Answer sessions

6. Course Structure

Module 1: Introduction to Third-Party Risk Management

Content:

• Definition and scope of third-party risks
• Types of third-party risks (financial, operational, reputational, compliance)
• Regulatory and legal considerations
• Implications of unmanaged third-party risk
• Principles of effective third-party risk management
• Organizational responsibilities and governance

Outcomes:

Participants will:

• Understand the importance of third-party risk management
• Identify potential risks in supplier and partner relationships
• Recognize the consequences of poor risk oversight

Module 2: Risk Identification & Assessment

Content:

• Supplier and partner risk profiling
• Risk assessment methodologies and tools
• Due diligence procedures
• Key risk indicators (KRIs)
• Prioritization of high-risk third parties
• Real-life case studies

Outcomes:

Participants will:

• Conduct risk assessments for third parties
• Identify critical risks affecting operations and reputation
• Apply structured evaluation frameworks

Module 3: Mitigation Strategies & Control Mechanisms

Content:

• Contractual safeguards and clauses
• Monitoring and performance review
• Internal controls and segregation of duties
• Compliance checks and audits
• Reporting and escalation processes
• Tools for continuous risk management

Outcomes:

Participants will:

• Design mitigation strategies for identified risks
• Strengthen internal control mechanisms
• Improve accountability and oversight of third-party relationships

Module 4: Practical Application & Institutional Frameworks

Content:

• Developing third-party risk management policies
• Risk monitoring dashboards and reporting templates
• Crisis management and contingency planning
• Ethical and reputational considerations
• Leadership responsibilities in risk oversight
• Creating an institutional third-party risk action plan

Outcomes:

Participants will:

• Apply risk management frameworks in practical scenarios
• Develop actionable policies and monitoring systems
• Promote a culture of accountability and compliance

7. Tour / Site Visit (1 Day)

Purpose:

To provide practical exposure to organizations with robust third-party risk management systems.

Activities:

• Visit to a reputable organization or regulatory oversight body
• Interaction with risk management and compliance teams
• Observation of third-party evaluation and monitoring systems
• Discussion of challenges and lessons learned
• Reflection and feedback session

Expected Learning:

Participants will:

• Observe real-world third-party risk management practices
• Understand how policies and controls are implemented
• Gain practical insights into improving organizational risk frameworks

8. Training Outcomes

Upon successful completion, participants will:

• Demonstrate improved understanding of third-party risks
• Strengthen organizational risk identification and mitigation processes
• Reduce financial, operational, and reputational risks
• Promote transparency, accountability, and ethical oversight
• Implement effective third-party risk monitoring and governance systems

9. Assessment & Evaluation

Participants will be evaluated through:

• Pre- and post-training assessments
• Case study analysis
• Group presentations and scenario simulations
• Risk assessment exercises
• Tour/Site Visit reflection report

10. Certificate of Completion

Participants who:

• Attend at least 90% of the training sessions
• Actively participate in all learning activities
• Successfully complete required assessments

Will receive a:

Certificate of Completion

Issued by FOTADE Training, Research and Resource Development Centre

The certificate formally recognizes successful completion of the Third-Party Risk Management Training (4 Days + 1 Day Tour/Site Visit) and demonstrated competence in identifying, mitigating, and monitoring third-party risks for organizational resilience and compliance.