Third-Party Risk Management ROI Calculator
Estimate the financial impact of improving your third-party risk management program. This ROI calculator models potential savings from reduced fines, lower remediation costs and less manual work.
Calculate your ROI
Why third-party risk management delivers measurable ROI
A well-structured third-party risk management program reduces the likelihood of expensive surprises and gives you clearer oversight of vendor risk as your business grows.
Reduce fines and remediation costs
Prevent regulatory penalties, legal expenses and remediation costs tied to unforeseen third-party misconduct or non-compliance
Save time on due diligence
Automate vendor screening and monitoring so staff spend less time chasing documentation and more time making impactful risk decisions
Protect your reputation
Identify third-party data risks and unethical behavior before they damage your brand reputation, affect stakeholder confidence, or trigger regulatory scrutiny
The business case for investing in TPRM
Growing enforcement activity and an expanding network of third parties make it harder to manage risk without the right tools.
- 83%
of Legal and Compliance leaders
identify risk after due diligence is complete
- 2x
satisfaction reported
by leaders using ongoing TPRM with the ability to remediate risk before it has an impact
How NAVEX supports third-party risk management
Managing third-party risk today requires stronger control and better visibility across your vendor ecosystem and how it intersects with your internal business risks. Third-party risk management solutions by NAVEX help you stay audit-ready with:
- Automated screening and monitoring – Assess and track vendor risk indicators from onboarding through to ongoing oversight
- Centralized visibility – Access vendor risk information, assessments and reporting in one place
- Structured vendor risk assessments – Evaluate third parties against compliance and ethics standards in a consistent, repeatable way
- Compliance reporting and documentation – Demonstrate active oversight and support regulatory review with auditable records and documented history
Third-party risk management ROI FAQs
How do you calculate ROI for third-party risk management?
Third-party risk management ROI is calculated by comparing the cost of your program to both the losses it helps you avoid and the time it saves your team. This includes reduced regulatory fines and remediation costs, as well as savings from automating vendor assessments, reducing manual work and applying consistent risk standards across all of your third parties.
What factors impact TPRM program costs?
The biggest cost driver is staff time, particularly the effort required to collect, review and update vendor information. Costs also increase as your vendor base grows and higher-risk relationships require deeper scrutiny. When information sits in different systems, teams spend more time responding to issues and audit requests, which adds to overall program expense.
How does TPRM software reduce regulatory risk?
TPRM software reduces regulatory risk by making vendor oversight consistent and visible. In addition to improving how third parties are screened and evaluated, NAVEX One brings vendor information into a single system and keeps a record of how risks were reviewed and addressed. When regulators ask how you identified, assessed or followed up on a third-party issue, you can show the steps taken rather than reconstructing them after the fact.
How long does it take to see ROI from TPRM software?
Many organizations begin seeing ROI through time savings within the first few months, especially when manual assessments and follow-up work are reduced. Broader financial impact – such as avoided compliance issues or fewer remediation costs – depends on the size of your vendor base and the maturity of your current program.
What is the cost of third-party compliance failures?
The cost of third-party compliance failures can include regulatory fines, legal fees, remediation expenses and operational disruption. As one example, an IBM report found that the average global cost of a data breach reached $4.88 million USD in 2024 – and incidents involving a third party added an average of $240,559 to that total.
Put your third-party risk management ROI estimates into action
Talk with our team about how NAVEX third-party risk management can support your goals and the savings you’ve outlined above.