TPRM

Under the DPDP Act, Third-Party Risk Management (TPRM) refers to the practices used by organizations to evaluate and govern risks associated with external entities that process personal data on behalf of a Data Fiduciary.

Organizations often engage Data Processors and other third parties for services involving personal data. TPRM helps organizations maintain visibility into these relationships by assessing what data is shared, why it is processed, what safeguards are implemented, and whether third parties meet applicable privacy and security expectations.

Effective TPRM supports accountability by helping Data Fiduciaries manage external processing activities, establish appropriate contractual requirements, monitor third-party risks, and ensure personal data is handled responsibly throughout the processing lifecycle.

In practice, gaps emerge when:

• Organizations do not have a complete inventory of third parties processing personal data.
• Vendor privacy risks are not assessed before onboarding.
• Data sharing agreements lack clear processing responsibilities.
• Third-party compliance evidence is difficult to collect.
• Organizations cannot track changes in vendor data processing activities.

Organizations address these challenges by maintaining third-party inventories, conducting privacy risk assessments, documenting Data Processor relationships, monitoring vendor controls, and maintaining compliance records. Within Privy, capabilities such as vendor risk workflows, data mapping, privacy assessments, and compliance reporting help organizations manage third-party privacy risks.