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

Review common vendor risk frameworks used in your industry and map them to your current process

Build a sample vendor due diligence checklist and a risk scoring method you can explain in interviews

Practice writing one-page risk summaries for non-technical stakeholders

Partner with procurement and legal to learn contract controls and negotiation patterns

Create a simple reporting pack that tracks vendor tier, findings, and remediation status

Target roles that include both onboarding assessments and ongoing monitoring to broaden experience