What is Exception Management?

Exception Management Definition

Exception management handles cases where controls cannot be fully met due to operational, technical, or contractual constraints. It documents risks, approval status, remediation timelines, and compensating controls. In TPRM, exception management ensures third-party deviations are known and governed.

FAQs

Why track exceptions?

They represent unmitigated or partially mitigated risks.

Do exceptions require approval?

Yes, typically through governance or risk committees.

Should exceptions be temporary?

Yes, they must include remediation timelines.