Types of engagement with third parties
The particular third-party engagements that you might have depend on your industry, size, and operational requirements. Each engagement brings its own set of risks and requires appropriate risk management measures (due diligence) to protect your interests.
Types of engagement
All third parties must be categorized as "Vendors" in the Company [core_company] table.
For more information of how this categorization is structured, see Third-party risk management data model.
| Type of third party | Description | Possible types of engagement |
|---|---|---|
| Advertising Agencies | Companies that create and execute advertising campaigns on behalf of organizations. | Developing marketing strategies, creating ad campaigns, managing media placements. |
| Affiliates/Subsidiaries | Related companies or subsidiaries that are part of the organization's corporate structure. | Depends on the type of organization |
| Auditors | Independent firms that conduct financial audits and provide assurance services to verify the accuracy of financial statements. | Conducting financial audits, providing internal control assessments, offering risk management advice. |
| Business Partners | Companies or organizations that collaborate with the organization on joint ventures, partnerships, or strategic alliances. | Joint marketing initiatives, co-developing products, sharing resources. |
| Business Process Outsourcers (BPOs) | Third-party providers that assume responsibility for specific business processes or functions. | Customer support, payroll processing, IT helpdesk support. |
| Call Centers | Service providers that handle customer inquiries, support, and telemarketing activities. | Customer service hotline, technical support, sales calls. |
| Clients | Entities or individuals who engage the organization's services or purchase its products. | Client Services |
| Cloud Service Providers (CSPs) | Companies that offer cloud-based infrastructure, platforms, or software solutions. | Data storage and backup, cloud computing, software-as-a-service (SaaS) solutions. |
| Collection Agencies | Third parties engaged to recover outstanding debts or delinquent payments on behalf of organizations. | Debt collection services, skip tracing, negotiation with debtors. |
| Consultants | Individuals or firms that provide expert advice, guidance, and solutions in specific areas. | Management consulting, IT consulting, process improvement, strategy development. |
| Contractors | Individuals or companies hired to perform specific tasks, services, or projects. | Construction projects, software development, marketing campaigns, event planning. |
| Counterparties | Entities or individuals with whom the organization has contractual agreements or business relationships. | Supplier contracts, partnership agreements, licensing agreements. |
| Credit Card Processors | Entities that facilitate payment processing and manage credit card transactions. | Credit card payment processing, fraud prevention, merchant services. |
| Customers | Individuals or entities that purchase goods or services from the organization. | Product sales, service subscriptions, client contracts. |
| Datacenters | Facilities that provide secure hosting, storage, and management of digital data and IT infrastructure. | Server colocation, data backup and recovery, network management. |
| Data Processors | Third parties that process or handle sensitive data on behalf of the organization | cloud storage providers. |
| Digital Marketing Agencies | Agencies specializing in digital marketing strategies and tactics. | Search engine optimization (SEO), social media marketing, content creation, online advertising. |
| Distributors | Third parties responsible for distributing or selling products or services on behalf of manufacturers or suppliers. | Product distribution agreements, supply chain management, sales partnerships. |
| E-commerce Platforms | Online platforms that enable businesses to sell products or services directly to customers over the internet. | Online storefront setup, payment processing integration, order fulfillment. |
| Employee Benefits Providers | Companies that offer employee benefits administration services. | Health insurance coverage, retirement plans, employee wellness programs. |
| Energy Providers | Entities that supply electricity, gas, or other forms of energy required for organizational operations. | Energy supply contracts, utility services, energy management consulting. |
| Environmental Consultants | Experts who assess and provide guidance on environmental impact, compliance, and sustainability matters. | Environmental impact assessments, regulatory compliance consulting, sustainability planning. |
| Event Management Companies | Service providers that plan, organize, and execute corporate events, conferences, trade shows, or promotional activities. | Event planning, venue coordination, logistics management. |
| Facilities Management Companies | Third parties responsible for managing and maintaining physical facilities. | Security services, cleaning and maintenance, repairs and renovations. |
| Financial Advisors | Professionals who provide advice and guidance on financial planning, investment strategies, and wealth management. | Financial planning, investment portfolio management, retirement planning. |
| Freight Forwarders | Entities that manage and coordinate the transportation of goods. | Freight logistics, customs clearance, supply chain management. |
| Franchises | Entities or individuals granted the right to operate a business under the organization's brand and business model. | Franchise agreements, brand licensing, franchise support services. |
| Government Agencies | Government bodies or entities with which the organization interacts. | Regulatory compliance, permits and licenses, government contracts. |
| Human Resources Outsourcers | Service providers that handle various HR functions. | Payroll processing, employee benefits administration, recruitment outsourcing. |
| Insurance Providers/Brokers | Companies or brokers that provide insurance coverage or risk management services. | Insurance policies, risk assessments, claims management. |
| Joint Venture Partners | Companies or organizations that enter into a joint venture with the organization. | Joint business development, shared marketing campaigns, co-production agreements. |
| Legal Services Providers | Law firms or legal service providers engaged to address legal matters. | Contract drafting, litigation support, regulatory compliance advice. |
| Marketing and Advertising Agencies | External agencies or consultants engaged for marketing, advertising, or public relations activities. | Marketing strategy development, ad campaign execution, brand positioning. |
| Outsourcing Providers | Third parties that handle specific business functions or processes. | IT outsourcing, finance and accounting services, manufacturing outsourcing. |
| Regulatory/Compliance Entities | Government agencies, regulatory bodies, or compliance consultants. | Compliance audits, regulatory reporting, industry certifications. |
| Resellers/Distributors | Third parties that distribute or resell the organization's products or services. | Retail partnerships, distribution agreements, reseller networks. |
| Research and Development Partners | Universities, research institutions, or specialized R&D companies. | Collaborative research projects, technology licensing, innovation partnerships. |
| Service Providers | External entities that offer various services to support the organization's operations. | IT support, facility maintenance, consulting services. |
| Software Providers | Companies that supply software solutions to support the organization's operations. | Enterprise software licensing, software maintenance and support, customized software development. |
| Subcontractors | Third parties engaged by contractors or vendors to perform specific tasks. | Subcontracted construction work, specialized service subcontracting, project-specific outsourcing. |
| Suppliers | External entities that provide goods or materials necessary for the organization's operations. | Procurement agreements, supply contracts, and third-party partnerships. |
| Technology Providers | Companies that supply technology solutions, software, or hardware. | IT infrastructure deployment, software integration, network setup and management. |
| Telecommunications Providers | Companies that provide communication services, such as voice, data, and internet connectivity. | Phone and internet services, virtual private networks (VPNs), network security solutions. |
| Testing and Quality Assurance Providers | Companies that offer software testing and quality assurance services. | Software testing, quality assurance assessments, user experience testing. |
| Training and Development Providers | Entities that offer training and development programs, courses, or workshops. | Employee training, leadership development, skills workshops. |
| Transportation Providers | Entities that provide transportation services for goods or people. | Freight transportation, passenger transportation, logistics coordination. |
| Travel Agencies | Companies that assist with travel arrangements, bookings, and itinerary planning. | Corporate travel management, travel booking services, group travel coordination. |
| Utility Providers | Companies that supply essential utilities, such as water, gas, or electricity. | Water supply, gas services, electricity distribution. |
| Vendors | External entities that supply goods or services required for organizational operations. | Supply chain management, procurement contracts, and third-party partnerships. |
| Warehousing and Logistics Providers | Companies that offer warehousing, storage, and logistics services. | Inventory management, order fulfillment, distribution network management. |
| Web Development and Design Agencies | Agencies specializing in web development, design, and digital experiences. | Website development, user interface design, e-commerce platform integration. |
| Wholesalers | Entities that buy goods in bulk and resell them to retailers or distributors. | Wholesale distribution agreements, supply chain management, bulk purchasing. |
| Workforce Agencies | Agencies that provide temporary or contingent workforce solutions. | Temporary staffing, contract workers, on-demand labor. |