Digital Transformation and Third-Party Governance: A New Era for Risk Management

Digital transformation is profoundly redefining the way organizations manage their relationships with third-party partners. In this rapidly evolving context, third-party governance is taking on a crucial strategic role, moving from simple document collection to collaborative compliance assessment. This shift is part of a broader movement toward Third Party Governance and Risk & Compliance (TPGRC), which succeeds the traditional Third Party Risk Management (TPRM).

We are entering a truly new era, characterized by the convergence of three disruptive forces: the integration of artificial intelligence into third-party evaluation processes, the harmonization of international regulatory frameworks, and the transition from a reactive control approach to a collaborative, shared governance model that fundamentally redefines relationships with external partners.

The stakes are high: according to a recent study, 61% of companies experienced a cybersecurity incident linked to a third party in 2023, an alarming 13% increase compared to the previous year. This reality underscores the urgency of adopting innovative approaches to assess and manage external partner compliance.

In this article, we will explore how digital transformation impacts third-party governance and why this evolution is essential for optimizing operational resilience. We will also address the role of advanced technologies in building sustainable digital trust within the third-party ecosystem.

The Impact of Digital Transformation on Governance

Digital transformation is fundamentally redefining third-party governance approaches in the public sector. According to a study, France has made significant progress in digitizing public services, but there is still room for improvement.

Digitizing Governance Processes

Digitization is transforming traditional governance processes by replacing paper-based documentary systems with integrated assessment platforms. In the French public sector, this transformation aims to improve administrative efficiency and deliver a better experience for citizens.

The Tech.gouv 2019–2022 program, led by the Interministerial Directorate for Digital Affairs, focuses on six key priorities, including improving service quality for users and modernizing the work environment for public agents.

Optimizing Governance with Digital Solutions

The adoption of tailored technological solutions is a key lever for optimizing third-party governance in the public sector. According to an EY study, the most advanced areas of digital transformation in public administration are those with the highest user interaction, such as public enterprises (50%) and social protection services (41%).

In healthcare and vocational training, digitalization requires a less hierarchical, more transversal way of working, fostering collaborative methods.

This digital shift paves the way for developing innovative, personalized services better suited to the specific needs of citizens, while strengthening transparency and accountability in administrative actions.

Case Studies and Success Stories

Case studies show how digital transformation is revolutionizing third-party assessment in practice. According to a Deloitte study, 87% of organizations have experienced a disruptive third-party incident in the past 2–3 years, with 28% facing major disruptions. These figures highlight the critical importance of effective digital governance in managing third-party relationships.

Case Study: Industrial Sector

In the industrial sector, Shell perfectly illustrates the impact of digital transformation on third-party governance. The company has deployed integrated data platforms enabling collaborative assessment of partners across its value chain. Through advanced collaborative environments, geographically dispersed teams can work together in real time on projects using digital twins and other data visualization tools.

This approach enables continuous monitoring and proactive maintenance, ensuring both worker safety and production process optimization. Operational resilience has significantly improved thanks to data-driven decision-making instead of relying on intuition.

Success Story: Construction Sector

In the construction sector, Skanska transformed its third-party governance during the Karlatornet project in Sweden. The company used Building Information Modeling (BIM) to create a shared digital model with all external partners, including architects, engineers, and subcontractors.

This integrated assessment platform allowed Skanska to refine the construction process, reduce errors, and improve efficiency. The project also leveraged 3D scanning technology to manage development and instantly identify potential complications, enabling faster, more accurate decision-making. Key success factors included strong leadership, innovation adoption, technology investment, and a collaborative approach with third parties.

Third-Party Risk Management in the Digital Age

Digital transformation is redefining how organizations manage risks linked to their third-party partners. A proactive and collaborative approach is essential to ensure operational resilience in a constantly evolving environment.

Proactive Risk Identification

Proactive risk identification is essential to anticipate potential threats before they materialize. According to a global EY study on third-party risk management (2023), 90% of organizations have directly invested in their TPRM programs to improve reporting, deepen risk understanding, and align skills. This approach shifts organizations from reactive management to a preventive strategy based on in-depth data analysis.

In the public sector, for example, continuous subcontractor monitoring can prevent delays in critical infrastructure projects by consistently assessing regulatory compliance. This heightened vigilance enhances the ability to anticipate and mitigate potential risks.

Real-Time Assessment and Monitoring

Collaborative assessment and real-time monitoring of third parties have become indispensable for maintaining an up-to-date risk picture. Modern digital platforms enable continuous monitoring with instant alerts on changes in third-party risk profiles. The same EY study shows that 63% of organizations plan to integrate external data providers and automation to better manage inherent risk assessment over the next 2–3 years.

In industry, these monitoring tools can anticipate supply chain disruptions by analyzing factors such as REACH compliance or evolving ICPE standards. This foresight turns third-party governance from a simple control function into a strategic advantage for operational resilience.

Implementing a continuous monitoring system not only quickly detects anomalies but also adjusts risk management strategies in real time. This dynamic approach is particularly crucial today, with threats evolving rapidly and regulatory compliance becoming increasingly complex.

Digital Strategy to Strengthen Governance

Digital transformation is redefining how organizations manage their third-party partners. A coherent digital strategy is essential to optimize third-party governance and ensure operational resilience.

Strategic Technology Deployment

Adopting advanced technologies is crucial for effective collaborative assessment of third parties. According to a McKinsey study, organizations using AI-driven analytics in governance see a 25% reduction in compliance costs. These tools enable continuous monitoring and real-time, data-driven decision-making.

Aprovall’s collaborative approach directly addresses the growing challenge of supplier fatigue — the weariness third parties feel from repeated, redundant evaluation requests. In fact, suppliers can receive dozens of similar questionnaires each month from different clients. The pay-to-collect model, with shared data, significantly reduces this administrative burden by centralizing already-collected information and avoiding repetitive requests. This turns third-party evaluation from a perceived constraint into a collaborative process that builds trust and improves shared data quality.

In the distribution sector, for example, using integrated assessment platforms can help anticipate risks related to international marketplaces, offering greater visibility into partner compliance and enabling early anomaly detection.

Building Credibility Through Transparency

Transparency is essential for establishing trust in the digital transformation process. Companies that adopt clear communication channels have seen a 35% decrease in attrition rates. This approach strengthens operational resilience by engaging all stakeholders.

In the public sector, implementing automated reporting systems for public procurement enhances transparency and facilitates GDPR compliance. This boosts trust among citizens and institutional partners.

A robust digital strategy, combined with a transparent approach, enables organizations to transform their third-party governance from a simple control function into a genuine strategic advantage while meeting increasing regulatory demands such as DORA, NIS 2, and CSRD.

Future Challenges in Third-Party Governance

Third-party governance is evolving rapidly under the influence of new technologies and regulatory requirements. This marks a fundamental transition from simple Third Party Risk Management (TPRM) to a more integrated approach of Third Party Governance and Risk & Compliance (TPGRC), redefining how organizations assess and manage external partners.

Adapting to Changing Regulations

The regulatory environment is expanding significantly, particularly in Europe, with new directives emerging. According to a recent OCEG study published in 2025, organizations face unprecedented regulatory complexity, with accelerated convergence of requirements for operational resilience, cybersecurity, and ESG reporting. This reality is driving regulators to strengthen the frameworks governing external partner management.

Regulations such as DORA, NIS 2, and CSRD are profoundly reshaping the third-party governance landscape by imposing stricter obligations in cybersecurity, ESG reporting, and digital resilience. In the distribution sector, these new demands require increased vigilance over international marketplaces and complex supply chains.

Resilient Partnerships

Modern third-party governance is shifting from a control-based relationship to a collaborative partnership model. As Luke Ellery, analyst at Gartner notes, “critical third parties should be treated as allies, moving from a monitoring strategy to a partnership strategy.” This approach fosters transparency and improves collaboration in the event of incidents.

In the construction sector, managing multi-tier subcontractors now requires collaborative evaluation rather than a simple audit. This transition to resilient partnerships not only meets regulatory requirements but also anticipates supply chain risks, particularly for critical infrastructure projects.

Implementing effective third-party governance therefore requires a proactive, collaborative, and technologically advanced approach — one capable of adapting to regulatory changes while strengthening the operational resilience of the entire ecosystem.