Document background
The Third Party Risk Assessment Policy serves as the cornerstone document for organizations operating in Germany to effectively manage risks associated with their third-party relationships. It is essential for ensuring compliance with various German and EU regulations, including the German Banking Act (KWG), GDPR, IT Security Act 2.0, and the Supply Chain Due Diligence Act. This policy document becomes necessary when organizations engage with multiple third parties and need a standardized approach to assess and manage associated risks. It provides comprehensive guidance on risk assessment methodologies, defines responsibilities across the organization, and establishes monitoring and reporting requirements. The policy is particularly crucial for organizations subject to regulatory oversight or those with complex supplier networks, as it helps demonstrate proper governance and risk management practices to regulators and stakeholders.
