The increasing dependency on third-party vendors has introduced significant and complex risks to organizations, particularly those operating within highly regulated industries such as finance, healthcare, and telecommunications. Traditional, static risk assessment methodologies are proving inadequate against the dynamic and sophisticated nature of modern cyber threats and evolving regulatory landscapes. This review paper proposes a comprehensive and integrated framework for third-party vendor risk assessment and continuous compliance monitoring. Drawing on existing literature, industry best practices, and technological advancements, the framework is structured around three core pillars: an initial, risk-based due diligence phase; the implementation of a continuous, real-time monitoring system; and the strategic use of enabling technologies. The paper examines key components including vendor categorization, the role of standardized documentation, and the application of modern tools such as Governance, Risk, and Compliance (GRC) platforms, security ratings services, and threat intelligence feeds. By synthesizing these elements, this paper provides a robust, scalable, and proactive model for managing third-party risk, ultimately strengthening an organization's security posture and ensuring sustained regulatory compliance in a complex interconnected ecosystem.
Essien et al. (Fri,) studied this question.