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Glossary › Outsourcing Risk
What is Outsourcing Risk ?
Outsourcing risk arises when external providers control critical operations, data, or infrastructure. Failures at the vendor can directly impact business continuity, compliance, and operational performance. TPRM evaluates outsourcing risk to ensure oversight and contractual protections.
FAQs
Why is outsourcing risk significant?
Vendors may lack the controls needed for regulated functions.
Is outsourcing risk the same as third-party risk?
It is a major component of third-party risk.
Can outsourcing be restricted by law?
Yes, some industries limit external delegation.
Responsible-AI TPRM Guide
Discover how risk teams apply AI responsibly to reduce third-party blind spots and stay audit-ready across global regulations.