Third-Party Risk Manager

Career Guide
A Third-Party Risk Manager helps an organization identify, assess, and reduce risks that come from working with outside vendors and partners. The role protects the business from security issues, service failures, regulatory problems, and financial exposure by setting standards, running risk reviews, and ensuring vendors meet ongoing expectations.

Key Responsibilities

  • Define third-party risk policies, standards, and review processes
  • Maintain a vendor inventory and risk tiering approach
  • Lead due diligence for new and renewing vendors
  • Assess vendor security, privacy, operational, and financial risk
  • Coordinate risk reviews with legal, security, procurement, and business owners
  • Negotiate risk requirements and contract controls with vendors
  • Track remediation plans and follow up on open issues
  • Monitor vendor performance, incidents, and changes in risk
  • Prepare reporting for leadership and audits
  • Support regulatory exams and internal audits related to vendor risk

Top Skills for Success

Stakeholder Management
Written Communication
Negotiation
Program Management
Risk Assessment
Vendor Due Diligence
Contract Risk Review
Issue Tracking
Control Testing
Cybersecurity Fundamentals
Data Privacy Fundamentals
Regulatory Compliance

Career Progression

Can Lead To
Senior Third-Party Risk Manager
Third-Party Risk Program Lead
Vendor Risk Governance Lead
Enterprise Risk Manager
Compliance Manager
Transition Opportunities
Information Security Risk Manager
Privacy Risk Manager
Operational Risk Manager
Internal Audit Manager
Governance Risk and Compliance Manager

Common Skill Gaps

Often Missing Skills
Defining Risk Tiering CriteriaBuilding Vendor Risk DashboardsWriting Clear Remediation PlansRunning Control AssessmentsManaging Regulatory ExamsContract Control Mapping
Development SuggestionsBuild a repeatable vendor assessment workflow, practice translating technical findings into business risk, and create simple reporting that shows vendor risk level, open issues, and remediation progress. Seek projects that involve contract reviews, incident response with vendors, and audit support to strengthen end-to-end ownership.

Salary & Demand

Median Salary Range
Entry LevelUSD 85,000 to 110,000
Mid LevelUSD 110,000 to 145,000
Senior LevelUSD 145,000 to 190,000
Growth Trend
Strong demand, driven by increased outsourcing, stricter regulatory expectations, and rising cyber and privacy risk. Hiring is especially active in financial services, healthcare, and technology.

Companies Hiring

Major Employers
JPMorgan ChaseBank of AmericaWells FargoCitigroupGoldman SachsMorgan StanleyCapital OneVisaMastercardAmerican ExpressUnitedHealth GroupCVS HealthAnthem Blue CrossKaiser PermanenteAmazonGoogleMicrosoftSalesforce
Industry Sectors
BankingInsurancePaymentsHealthcareTechnologyRetailTelecommunicationsEnergy

Recommended Next Steps

1
Review common vendor risk frameworks used in your industry and map them to your current process
2
Build a sample vendor due diligence checklist and a risk scoring method you can explain in interviews
3
Practice writing one-page risk summaries for non-technical stakeholders
4
Partner with procurement and legal to learn contract controls and negotiation patterns
5
Create a simple reporting pack that tracks vendor tier, findings, and remediation status
6
Target roles that include both onboarding assessments and ongoing monitoring to broaden experience