GlossaryEN1 min readUpdated: Jun 26, 2026

Third Party Risk Management

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/t/third-party-risk-management.asp

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Logistics Concept

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Definition & Explanation

Third Party Risk Management (TPRM) becomes relevant in logistics operations the moment external entities—subcontractors, warehouse operators, customs brokers, or suppliers—are integrated into the service chain. The programme systematically identifies, assesses, and controls the risks these parties introduce: operational failures, sanctions violations, financial instability, and compliance gaps. Standard practices include periodic audits, sanctions screening, financial health checks, and enforceable contractual compliance clauses. TPRM is distinct from internal risk management, which addresses an organisation's own processes and assets. The depth of a TPRM programme is typically calibrated to the criticality of each third party within the overall operation.

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Third Party Risk Management

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