Business Pitch Dictionary by pitch.dog
Enterprise risk & controls · Core

Third-party risk

Also called: vendor risk

ELI5

Risk introduced through suppliers, partners, outsourcers or other external parties.

Used in conversation

“Can we separate the likelihood of third-party risk from its potential impact?”

Pitch context

You will see “Third-party risk” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.