Procurement teams are under more pressure than ever to keep supply chains strong and reliable. Factors like geopolitical instability, ESG responsibilities and market fluctuations are driving procurement professionals to take proactive measures in managing their supplier networks and preventing disruptions. 

Third-party risk management software has become an essential tool in achieving this. It helps you see potential risks in your supply chain, monitor supplier performance more effectively and take fast action to prevent disruptions. 

In this article, we explore what third-party risk management software is, why it’s important, what it can do and how to get started with it.  

Why third-party risk management matters more than ever 

Third-party risk management is the process of identifying, assessing and mitigating risks that come from working with external suppliers. Without it, you’re more likely to experience disruptions, non-compliance, data breaches, reputation damage and other negative outcomes.  

Combine this with the rising complexity and global distribution of supply chains, and third-party risk management becomes business-critical. Let’s take a closer look at why it’s so important:  

The expanding risk landscape 

From war in Eastern Europe and the Middle East to climate-related issues and cybersecurity breaches, today’s supply chains face diverse and dynamic threats.  

Each new crisis reminds us how important it is to prepare for the unexpected. For procurement teams, this means monitoring not just tier-one suppliers, but also second- and third-tier dependencies that can quietly chip away at your supply chain’s resilience. 

Operational and reputational risks 

A single supplier failure can disrupt operations, delay critical deliveries, and compromise compliance, all of which can significantly impact reputation and revenue.  

Whether it’s a supplier going into administration or breaching data regulations, procurement teams must be able to respond quickly and decisively. 

The importance of proactive risk management 

Proactively managing risks means you can prevent costly surprises instead of reacting to them after the fact. It maintains continuity and gives organisations a competitive edge.  

With the right software, procurement teams can shift from reactive fire-fighting to strategic planning, all the while making smart decisions based on real-time data and predictive insights. 

Key features of third-party risk management software 

Managing risk at scale requires a better solution than spreadsheets and manual processes. Procurement professionals need systems that automate monitoring, surface meaningful insights and connect risk data to everyday decision-making. 

Risk identification and assessment 

Third-party risk management software helps you onboard suppliers faster, with automated risk scoring that looks at a variety of indicators, including financial health, regulatory compliance, geopolitical risk, and ESG performance.  

With tools like the Atamis Supplier Assurance Enhancer, teams can issue tailored due diligence questionnaires and capture responses directly in the platform. 

Real-time monitoring and alerts 

Once you’ve onboarded suppliers, you need a way to maintain visibility.  

Being able to track performance against key SLAs and receive alerts when thresholds are breached enables teams to intervene early and reduce disruption.  

Integration with contract records, spend data and project milestones ensures that risk is considered in the context of performance. 

Strategic data integration 

Risk data becomes most powerful when it’s not siloed. By linking it with contracts, spend categories, supplier history and ongoing performance metrics, procurement leaders can make better-informed decisions.  

Tools that support this level of integration, like Atamis’ modular platform, help translate raw data into actionable insights. 

Building resilience through integrated tools 

A robust risk strategy doesn’t operate in isolation. It must be embedded across the procurement lifecycle, supported by tools that centralise supplier intelligence and enable proactive action. 

A unified view of suppliers 

The Atamis Contract & Supplier App offers a central repository for all supplier and contract data, empowering teams with a single source of truth.  

Teams can monitor supplier communications, performance outcomes, contract terms, and risk flags, all in one place.  

This holistic view makes it easy to spot trends and respond to issues promptly. 

Streamlined compliance with supplier assurance 

Using the Supplier Assurance Enhancer, procurement teams can automate the collection and review of compliance documentation across key risk areas, from modern slavery to cybersecurity and sustainability.  

This allows for consistent due diligence without additional manual effort, ensuring ongoing compliance without bottlenecks. 

Proactive mitigation with risk & issues enhancer 

Atamis also supports proactive risk management through its Risk & Issues Enhancer.  

Teams can create and track risk events, assign actions and monitor resolution. 

This transparency and accountability are vital for collaborative mitigation and long-term relationship building. 

The role of SRM in third-party risk strategy 

Resilience is not just about having the right data; it’s about having the right relationships. That’s why third-party risk management is most effective when integrated with a wider Supplier Relationship Management (SRM) strategy. 

Turning Suppliers into Strategic Partners 

Strong SRM fosters open communication and transparency, creating an environment where suppliers feel valued and are more willing to collaborate during times of disruption.  

Strategic partnerships also encourage shared investment in contingency planning and innovation. 

Aligning Risk with Innovation and ESG 

By integrating third-party risk management with SRM, procurement teams can better align supplier relationships with strategic business objectives and compliance standards. This approach enables more informed investment decisions, supporting both operational resilience and regulatory confidence. 

It turns risk management into a proactive tool for governance and growth, not just protection. 

Explore Integrated SRM Solutions 

Atamis provides an end-to-end Supplier Relationship Management Software solution that integrates risk data, supplier communications, and contract performance in one seamless platform.  

Our modular approach allows you to build a tailored solution that matches your organisation’s specific risk appetite and operating model.  

Wrap-up 

Procurement teams today must think beyond traditional cost and compliance levers. Building a resilient supply chain demands real-time insight, proactive management, and strategic collaboration with suppliers. Third-party risk management software isn’t just a protective measure – it’s a strategic enabler. 

The Atamis Advantage 

Atamis’ flexible platform, hosted on Salesforce, supports everything from risk scoring and SLA monitoring to automated due diligence and performance tracking.  

With integration across contract, supplier, and tender management, you gain a complete view of your procurement ecosystem – allowing you to anticipate issues and adapt quickly. 

Next Steps 

If your procurement team is ready to strengthen supply chain resilience and transform how you manage third-party risk, Atamis is here to support you.  

Our solutions are built to be flexible, scalable, and tailored to your needs. Discover more about Atamis SRM and see how we can help you future-proof your procurement operations.