Third Party Risk Analyst

Career Guide
A Third Party Risk Analyst helps an organization understand and manage risks that come from working with vendors, suppliers, and other external partners. The role focuses on reviewing third parties before onboarding and monitoring them over time to reduce the chance of security, privacy, compliance, financial, or operational issues.

Key Responsibilities

  • Review third party risk questionnaires and supporting evidence
  • Assess information security controls at third parties
  • Assess privacy practices and data handling
  • Evaluate regulatory and contractual compliance risks
  • Coordinate due diligence for new vendor onboarding
  • Monitor third parties for changes in risk over time
  • Track remediation plans and validate completion
  • Document risk ratings and decision recommendations
  • Support internal audits and external examinations
  • Partner with procurement, legal, security, and business owners to resolve issues

Top Skills for Success

Risk Assessment
Vendor Due Diligence
Information Security Fundamentals
Privacy Fundamentals
Regulatory Awareness
Control Testing
Policy Interpretation
Contract Review
Stakeholder Management
Written Communication
Attention to Detail
Project Coordination

Career Progression

Can Lead To
Third Party Risk Manager
Vendor Risk Manager
Information Security Risk Analyst
Governance Risk and Compliance Analyst
Operational Risk Analyst
Compliance Analyst
Transition Opportunities
Information Security Analyst
Privacy Analyst
Internal Auditor
Enterprise Risk Analyst
Business Continuity Analyst

Common Skill Gaps

Often Missing Skills
Evidence EvaluationRisk WritingControl MappingIssue ManagementThird Party MonitoringData Classification
Development SuggestionsPractice turning vendor responses into clear risk statements with impact and likelihood. Build comfort reviewing security and privacy evidence. Learn how to map vendor controls to your organization’s requirements and track remediation to closure.

Salary & Demand

Median Salary Range
Entry LevelUSD 65,000 to 85,000
Mid LevelUSD 85,000 to 115,000
Senior LevelUSD 115,000 to 150,000
Growth Trend
Growing demand, driven by increased outsourcing, stricter privacy expectations, and higher scrutiny of vendor security and resilience.

Companies Hiring

Major Employers
JPMorgan ChaseBank of AmericaWells FargoCitigroupGoldman SachsMorgan StanleyVisaMastercardUnitedHealth GroupCVS HealthAmazonMicrosoft
Industry Sectors
BankingInsurancePaymentsHealthcareRetailTechnologyTelecommunicationsEnergyGovernment ContractorsConsulting

Recommended Next Steps

1
Create a checklist for reviewing common vendor evidence and apply it to sample packets
2
Write three example risk summaries using plain language and clear recommendations
3
Learn a common security control framework and practice mapping controls to requirements
4
Build a simple tracking method for remediation actions, owners, dates, and status
5
Partner with procurement and legal to understand onboarding steps and contract clauses
6
Prepare interview stories that show prioritization, communication, and decision support