What is the difference between Third Party Risk vs Vendor Risk Management?
Career: Third Party Risk
| Aspect | Third Party Risk | Vendor Risk Management |
|---|---|---|
| Focus | Assessing risks from all external entities, including vendors, partners, and contractors | Evaluating risks specifically associated with third-party vendors |
| Credentials | Risk management certifications, compliance knowledge | Vendor management certifications, procurement experience |
| Work Environment | Corporate risk teams, compliance departments | Procurement, vendor management teams |
| Industry Usage | Financial, healthcare, technology sectors | Primarily in supply chain and procurement functions |
Third Party Risk encompasses a broader scope, including all external entities, while Vendor Risk Management specifically focuses on vendors. Both roles require risk assessment skills and industry knowledge, but Third Party Risk roles often involve broader compliance and strategic oversight.