5 Traps in TPRM and Contract Management – and How to Steer Clear of Them

Third Party Risk Management (TPRM) is no longer just a compliance issue – it has become a key component of modern corporate governance.

Especially in regulated industries, structured third-party management is critical. Yet many risks don’t emerge in the risk report, but much earlier – in contract management.

Siloed contract administration, missing or unclear provisions, and outdated documentation can quickly lead to avoidable risks. In this post, I’ll highlight five common pitfalls at the intersection of TPRM and contract management – and how to effectively avoid them.

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1. Contracts are not centrally accessible

‍2. Important clauses are missing or unclear

‍3. Service descriptions are outdated or inaccurate

4. Contract data and TPRM information are inconsistent

5. Mitigating measures are not linked to contractual documents

Conclusion

Strong Third Party Risk Management requires an equally strong contract management – and vice versa. Only when both disciplines are closely integrated can third parties be managed sustainably, efficiently, and with minimal risk. Those who understand and proactively avoid the common pitfalls not only increase security and compliance, but also build a far more reliable foundation for strategic decision-making across the entire organization.

Would you like to see how Leno helps you avoid these pitfalls?Schedule a demo with us today – we’ll show you what modern Third Party Risk Management looks like in practice.