How can TPRM programs evolve to handle hyperautomation vendor risks?

Third-party risk management programs can evolve to address hyperautomation vendor risks, particularly with the increased reliance on AI-driven tools and processes, by implementing the following strategies:

1. Understand the AI technology: Ensure a thorough understanding of the AI tools and processes being utilized by third-party vendors to identify potential risks associated with these technologies.

2. Enhanced due diligence: Conduct thorough due diligence when selecting vendors, considering their AI capabilities, data security practices, and compliance with regulations.

3. Comprehensive contract terms: Include specific requirements related to AI technology, data security, regulatory compliance, and risk management in vendor contracts to mitigate potential risks.

4. Ongoing monitoring and assessment: Implement continuous monitoring and assessment of third-party vendors to identify any changes in their AI technology, practices, or security posture that may pose risks.

5. Robust cybersecurity measures: Implement strong cybersecurity measures to protect sensitive data and systems from potential threats arising from AI-driven tools and processes used by third-party vendors.

6. Regular audits and assessments: Conduct regular audits and assessments of third-party vendors to ensure compliance with security standards, data protection regulations, and risk management protocols.

By incorporating these strategies, third-party risk management programs can effectively evolve to address hyperautomation vendor risks in the context of increased reliance on AI-driven tools and processes.