Relationship (Owner) Goals: Why Half Your TPRM Red Flags Stay Hidden

Published on May 30th, 2025

Introduction

Third-Party Risk Management (TPRM) is crucial for today’s organizations. It helps protect businesses from risks posed by vendors and partners. Yet, despite best efforts, many TPRM programs fail to uncover all potential red flags. In fact, it’s common for half of the risks to remain hidden. One key reason lies in the misalignment of relationship owners’ goals and the TPRM process. This article explores why red flags go unnoticed and how clarifying relationship owner goals can improve risk detection.

The Role of Relationship Owners in TPRM

Relationship owners are individuals within an organization responsible for managing vendor relationships. They act as the main point of contact and oversee service delivery. Their goals often focus on maintaining positive partnerships, meeting business needs, and ensuring smooth operations. While these goals are valid, they can sometimes conflict with thorough risk assessment, leading to overlooked warning signs.

Misaligned Goals and Risk Blind Spots

Relationship owners may prioritize operational efficiency and partnership continuity over identifying potential risks. This can cause them to downplay or ignore early warning signs to avoid disrupting the relationship. Additionally, pressure to meet business targets may lead to rushed or incomplete vendor evaluations. As a result, risk indicators such as compliance gaps, financial instability, or security vulnerabilities may go undetected.

Communication Gaps Within the Organization

Another factor that hides red flags is poor communication between TPRM teams and relationship owners. Without clear channels and shared understanding, important risk information might not be fully reported or acted upon. Relationship owners may lack the training or resources needed to spot risks, while TPRM teams might miss critical business context that affects risk levels.

Strategies to Align Goals and Improve Risk Detection

To uncover hidden risks, organizations should align relationship owners’ goals with TPRM objectives. This means balancing partnership management with rigorous risk evaluation. Providing relationship owners with risk awareness training and clear escalation processes can help. Encouraging open communication and collaboration between TPRM and business teams ensures that risk concerns are raised early and addressed properly.

Leveraging Technology for Better Insights

Technology can support risk detection by automating vendor assessments and monitoring key risk indicators. Relationship owners can benefit from dashboards that highlight risk metrics alongside performance data. This integrated view helps maintain a healthy balance between business goals and risk management.

Conclusion

Half of your TPRM red flags may stay hidden due to goal misalignment, communication gaps, and lack of risk awareness among relationship owners. By realigning goals, improving collaboration, and using technology, organizations can better identify and manage third-party risks. Ensuring that relationship owners are equipped and motivated to detect risks will strengthen the entire TPRM program and protect the business more effectively.