Most third-party risk management is mired in bureaucracy that slows down engineering teams without actually reducing risk. Security teams send endless inflexible questionnaires, engineering waits weeks for approvals, and everyone pretends this theater makes us safer.
It doesn't have to be this way. Here's how to build TPRM that actually works.
Why Traditional TPRM Fails
We've analyzed hundreds of vendor security incidents. In nearly every case, the vendor had passed a traditional security review. This isn't surprising — most reviews focus on policies and documentation instead of actual security practices. When Target was breached through their HVAC vendor, that vendor had passed multiple security reviews.
So, let's be honest about why most TPRM programs are broken:
- They happen too late. Security reviews start after engineering has already chosen and integrated a vendor. At that point, switching vendors is extremely expensive, so the security review becomes a rubber stamp.
- They focus on the wrong things. Massive standardized questionnaires asking about security certifications don't tell you if a vendor will actually keep your data safe. We've all seen "SOC 2 certified" companies get breached.
- They don't scale. Manual reviews worked when you added one vendor per quarter. They break completely when you're shipping features daily and each one pulls in new dependencies.
- They create learned helplessness. Engineering teams learn that security reviews are pointless bureaucracy, so they start hiding vendor usage or looking for workarounds.
The Real Solution: Build Security Into Your Development Process
This isn't just theory — companies that integrate security into development catch 80% more issues and ship secure code twice as fast. The key is making security automatic and unavoidable, like spell-check in your IDE. When security is built in, it becomes a competitive advantage instead of a bottleneck.
Instead of bolting security on at the end, you need to make it part of how engineering teams work. Here's how:
1. Automate Everything Possible
Here's what good automation looks like in practice:
- Your CI/CD pipeline automatically scans new dependencies and blocks high-risk packages
- Vendor security posture is monitored continuously, with automatic alerts for changes
- Compliance requirements are checked automatically during deployment
- Security reviews start automatically when new vendors are added to your systems
The goal isn't to eliminate human judgment, but to automate the routine, so humans can focus on complex decisions.
"But my security team likes manual reviews!"
Too bad. You can't manually review hundreds of NPM packages or keep track of every AWS service your team uses. Automation isn't optional anymore.
2. Focus on What Actually Matters
Stop wasting time on things that don't reduce risk.
Most vendor security reviews can degenerate to theater – everyone knows it, but no one wants to say it. We've analyzed dozens of security incidents and found zero correlation between detailed security policies and actual security. Here's what to focus on instead:
Things That Don't Matter:
- Whether a vendor has a 200-page security policy
- If they've filled out your custom security questionnaire
- How many certifications they have
- If their CEO signed your security addendum
More things that don't matter:
- Whether they use a specific security framework
- The length of their password policy
- If they have a bug bounty program
- Their security org chart
Things That Actually Matter:
- What data they can access
- How that data is encrypted
- Their incident response time
- Their uptime guarantees
- How quickly they patch vulnerabilities
- Whether they've had recent breaches
More things that actually matter:
- Their mean time to patch critical vulnerabilities
- Whether they support modern authentication standards
- Their actual uptime history (not just SLA promises)
- How they handle customer data deletion
- Their track record of security transparency
3. Make Decisions Based on Real Risk
Not all vendors are equal.
Your password manager needs more scrutiny than your video conferencing tool. Your payment processor needs more monitoring than your design software. If you're treating all vendors the same, you're doing it wrong.
Here's how to segment vendors effectively:
Critical Infrastructure (Highest Risk):
- Cloud providers
- Authentication services
- Payment processors
- Database providers
These need thorough vetting, strong contractual guarantees, and continuous monitoring. A day of downtime could kill your business.
Development Tools (Medium Risk):
- CI/CD platforms
- Monitoring tools
- Testing services
- Analytics platforms
These need security reviews focused on data access and basic guarantees. Some downtime is acceptable.
Internal Tools (Lower Risk):
- Project management software
- Design tools
- Documentation platforms
- HR systems
Basic security reviews and standard contracts are fine. These aren't critical to operations.
API Services (Variable Risk):
- Identity verification APIs
- Email service providers
- SMS providers
- Map services
Risk level depends on data access and business impact. An email service provider handling sensitive notifications needs more scrutiny than one sending marketing emails.
Development Dependencies (Distributed Risk):
- npm packages
- Python modules
- Ruby gems
- JavaScript libraries
These need automated scanning and version control more than traditional security reviews.
4. Build Real-Time Visibility
You can't secure what you can't see. Most companies discover new vendors when they show up in expense reports or after a security incident. That's too late. You need real-time visibility into your vendor ecosystem before things go wrong.
Here's what comprehensive visibility looks like:
A Complete Vendor Inventory:
- All production dependencies
- Development tools
- Internal applications
- Cloud services
- API integrations
Real-Time Monitoring:
- Dependency vulnerability alerts
- Vendor uptime status
- Security incident notifications
- Compliance changes
- Data access patterns
Automated Response Workflows:
- Incident response procedures
- Failover processes
- Communication protocols
- Remediation tracking
Practical Implementation: How to Actually Do This
Don't try to boil the ocean. Start with your critical vendors, get quick wins, and expand from there. This isn't a theoretical exercise – we've seen this exact plan work at dozens of companies.
Here's your 90-day plan to fix TPRM:
Days 1-30: Get Visibility
- Use tools like CloudMapper to visualize AWS infrastructure
- Deploy dependency scanning in development environments first
- Identify those critical dependencies
- Start with critical vendors and expand coverage gradually
- Build initial risk assessment templates
- Document data flows
- Set up basic monitoring
Days 31-60: Automate Core Processes
- Integrate security tools into CI/CD pipelines
- Set up automated vulnerability scanning
- Create initial vendor assessment automations
- Develop incident response playbooks
Days 61-90: Optimize and Scale
- Build custom security dashboards
- Implement automated compliance reporting
- Create self-service security documentation
- Develop vendor risk scoring systems
- Train engineering teams
Common Objections (and Why They're Wrong)
We've heard every excuse for sticking with manual TPRM. They all boil down to fear of change or misunderstanding what automation actually means.
Let's debunk the most common ones:
"We need manual reviews for compliance"
No, you need documentation of your review process. Automated reviews with good logging are actually better for compliance than manual reviews.
"Our security team isn't ready for automation"
They better get ready. The alternative is becoming a bottleneck that engineering teams work around, which is worse for security.
"We can't trust automated tools"
You're already trusting automated tools every time you deploy code. Security shouldn't be different.
"We need to customize our security reviews"
Automation doesn't mean one-size-fits-all. Good automation tools let you customize rules and workflows while eliminating manual busy work.
"Small vendors won't complete our security reviews"
That's exactly why automation matters. Good tools make it easier for vendors to prove their security posture without filling out endless questionnaires.
Real Examples of What Good Looks Like
Skip the theory – here's how successful companies actually manage vendor risk. These aren't hypothetical examples. These are real approaches from companies that ship code daily while maintaining strong security.
Here's how real companies do TPRM right:
Stripe's Approach:
- Automated dependency scanning
- Real-time security monitoring
- API-first vendor assessment
- Clear risk categories
Result: They can onboard new vendors in hours instead of weeks while maintaining better security than companies with month-long review processes.
Netflix's Strategy:
- Zero-trust architecture
- Automated security testing
- Continuous monitoring
- Clear security requirements
Result: They can use thousands of vendors safely because security is built into their architecture, not bolted on afterwards.
Tools That Actually Help
Your tech stack might be advanced, but if your security team is still tracking vendors in spreadsheets, you're doing it wrong. Modern TPRM requires modern tools. And no, your GRC platform that takes 6 months to configure doesn't count.
The right tools should make security easier for both security and engineering teams. If your tools are creating friction, you've picked the wrong ones.
Here's what you actually need to manage vendor risk effectively:
Visibility Tools:
- Dependency scanners
- Asset inventory systems
- Cloud security platforms
- Network monitoring
Automation Tools:
- CI/CD security scanning
- Automated assessment platforms
- Security alerting systems
- Response automation
Management Tools:
- Risk dashboards
- Compliance tracking
- Vendor management platforms
- Incident response systems
Security Testing Tools:
- SAST/DAST scanners
- API security testing
- Dependency vulnerability scanning
- Infrastructure security testing
Compliance Automation:
- Policy management platforms
- Compliance mapping tools
- Evidence collection automation
- Audit trail generation
Risk Analytics:
- Security scoring platforms
- Risk quantification tools
- Threat intelligence platforms
- Security metrics dashboards
Make Security a Competitive Advantage
Good TPRM isn't about preventing engineering teams from using vendors. It's about helping them use vendors safely and efficiently.
When done right, TPRM becomes a competitive advantage:
- Ship features faster because security reviews don't block you
- Use the best tools because you can evaluate them quickly
- Respond to incidents faster because you have real-time visibility
- Scale more efficiently because processes are automated
- Stay compliant without slowing down
The Future of TPRM
TPRM is evolving quickly. The old way of managing vendor risk is dying. Companies that stick with manual reviews and spreadsheets will fall further behind.
The good news? The tools and practices to do this right already exist. Here's what's coming:
- AI-powered risk assessment
- Automated vendor evaluation
- Real-time risk scoring
- Predictive security alerts
- Integrated compliance automation
But the core principles won't change: automate everything possible, focus on real risks, and make security part of your development process.
The key is building systems that scale automatically as your vendor ecosystem grows. Manual processes break exponentially as you scale — automated systems get better.
Need a robust process that maps well to TPRM tools?
That's precisely why you need a flexible TPRM platform, not a rigid one. You're not looking for a one-size-fits-all checklist; you need a system that adapts to your unique workflows. Think of it this way: You can manage vendor risk with a series of disconnected emails and spreadsheets, but that's like trying to build a skyscraper with sticks. Instead, picture a "launch" framework, where each vendor review is a structured, dynamic process.
Customizable intakes, pre-populated with data from your Jira tickets and other systems, automated decision-making, vendor questionnaires, and AI-powered document analysis – all integrated into a single vendor profile. That's not complexity; that's curated organization, turning chaos into clarity and giving you a powerful, unified view of your vendor landscape. You're not simplifying your process; you're streamlining it. You're not just tracking vendors; you're orchestrating a dynamic security lifecycle.
Ready to Fix Your TPRM?
TerraTrue helps engineering teams automate vendor risk management without slowing down development. We've built the tools we wished we had when running security at high-growth companies.
Talk to us about fixing your TPRM.
This approach might seem radical if you're used to traditional TPRM. Good. Traditional TPRM is broken, and pretending otherwise wastes everyone's time. Build security into your development process, automate everything you can, and focus on real risks instead of checkbox compliance.
Book a demo with us. Your engineering teams will thank you, your security teams will be more effective, and your company will actually be safer.