Free Cyber Risk Analysis: Your Top Cyber Risks in 3 Clicks

Get Started

What is Fourth-Party Risk Management?

Fourth-party risk management (FPRM) is an extension of third-party risk management (TPRM) and refers to the process of identifying, assessing, and mitigating the risks associated with an organization's fourth-party relationships. In essence, fourth-party risk management deals with the risks posed by the vendors and subcontractors of an organization's third-party service providers.

To provide a clear understanding, let's break down the relationships involved:

First Party: This is the organization itself, which seeks to procure goods or services from third-party vendors or service providers.

Third Party: The organization directly contracts with vendors or service providers to provide goods or services. This is the primary focus of traditional third-party risk management (TPRM).

Fourth Party: Fourth parties are the vendors, subcontractors, or partners that the third-party service provider may engage with to fulfill their contract obligations with the organization. These fourth parties are indirectly connected to the organization.


Three Top Risk Assessment Templates

Read the Post