DATASHEET

Archer Third Party Engagement®

Use Case for Third Party Governance

The Challenge
Organizations are increasingly using third parties to support their operations anddeliver products and services to their clients. While outsourcing can have many benefits,organizations retain the risks associated with their third-party relationships. These risks
can have significant impact, including regulatory compliance violations, information
security incidents, financial losses from errors, fraud, business interruption andreputational damage.
In many organizations, there is an incomplete understanding of which business activities
are supported by third-party product and service engagements. There is even lessunderstanding of the risks associated with an engagement or the exposure to a thirdparty across all of the engagements the y are delivering to the organization. Without
an understanding of which third parties and third-party engagements are high risk, risk
cannot be effectively managed. For highly regulated industries such as banking, poor
third-party governance can result in regulatory fines and sanctions.

Overview
Archer Third Party Engagement allows you to catalog the products and services beingdelivered to your organization by third parties. It also allows you to associate product andservice engagements to the business process and business units they support, giving you aholistic understanding of your dependency on each third party. You can establish accountability
for engagements, perform inherent risk assessments across multiple risk categories, catalog
and assess the adequacy of proof of insurance for each supplier, evaluate the financial viabilityof each third party, and roll up all engagement inherent risk assessments to the third party delivering the engagement. This provides you with an understanding of the overall inherent risk
associated with each third-party relationship.
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Benefits
With Archer Third Party Engagement, you can:• Efficiently manage your third-party risk management program and resource allocation based on the most 				 significant priorities.
• Gain insight to where, how and why third parties are being used throughout your organization and who		 is responsible for the third-party relationship.
• Identify inherently high-risk third-party products, services and relationships.
• Provide positive assurance to senior management, the Board and regulators regarding the adequacy of 				 your organization’s third-party governance program.

Features• Catalog contracts and master services agreements		 associated with engagements.

• Catalog third parties, their business hierarchy, and the		 product and services engagements they deliver to		 your organization.

• Execute contract risk assessments utilizing standardized		 questionnaires focused on minimum required contract		 language to mitigate and transfer risk.

• Map third-party products and services to the business		 processes they support.
• Inherent risk assessments on engagements across seven		 different risk categories.

• Capture third-party proof of insurance and evaluate the adequacy		 of the insurance relative to all engagements being delivered.

• Capture and analysis of significant fourth party relationships.

• Integrate results of your business process impact analysis into		 your assessment of inherent resiliency risk for each third party.

• Analysis of the financial wherewithal of each third party.

• Establish accountability for each third party engagement.

• Roll up inherent risk assessment of each engagement		 provided by a third party to obtain an overall “aggregate”		 inherent risk profile of the third party.
• Robust notifications and reporting for greater transparency		 into third party relationships.

• Track exceptions related to third party engagements.
• Reporting for third parties that present the greatest inherent risk to		 your organization and the business processes they support.
• ESG specific questions are included in assessments.

About Archer
Archer is a leading provider of integrated risk management (IRM) solutions that enable customers to improve strategic decision-making
and operational resilience with a modern technology platform that supports qualitative and quantitative analysis driven by both businessand IT impacts. As true pioneers in GRC software, Archer remains solely dedicated to helping customers manage risk and compliancedomains, from traditional operational risk to emerging issues such as ESG. With over 20 years in the risk management industry, theArcher customer base represents one of the largest pure risk management communities globally, with more than 1,200 customers
including more than 50% of the Fortune 500.
Visit www.ArcherIRM.com.

@ArcherIRM

Archer Integrated Risk Management©2023 Archer Technologies LLC. All rights reserved. Archer and the Archer logo are registered trademarks or trademarks of ArcherTechnologies LLC in the United States and other countries. All other trademarks are the property of their respective owners. Archerbelieves the information in this document is accurate. The information is subject to change without notice. 10/23 Data Sheet.