ITPRM Institute for Third Party Risk Management
Toolkit 01 · Version 0.9 draft

The KPI library

Contract management and third party risk indicators, each written so two organisations measuring it arrive at the same number. Every KPI carries one of four classifications, which tells you what the measure is for rather than how important it is.

Key

The small set the board sees. Each one, on its own, would change a decision.

Supporting

Explains movement in a key KPI. Read alongside, not in isolation.

Prescriptive

Measures whether the required practice happened before the risk was taken. Forward looking.

Detective

Surfaces what has already gone wrong, so it can be corrected and counted.

Filter 27 of 27 indicators
RefIndicatorDefinitionClassCadence
K-01Critical third parties with a current risk assessmentShare of third parties tiered critical whose assessment is within its validity period.KeyMonthly
K-02Contracts with a tested exit planShare of critical contracts where an exit or step-in plan exists and has been tested in the last 24 months.KeyQuarterly
K-03Concentration exposure of the ten largest providersCombined annual contract value of the ten largest providers as a share of total third party spend.KeyQuarterly
K-04Residual risk above appetiteNumber of third party relationships whose residual rating exceeds the stated appetite, with no accepted exception.KeyMonthly
K-05Overdue remediation actionsNumber of agreed remediation actions past their due date, weighted by the criticality of the third party.KeyMonthly
K-06Contract value under active managementShare of total contract value held in the repository with a named owner and a review date.KeyQuarterly
S-01Assessment turnaround timeMedian working days from questionnaire issued to assessment signed off.SupportingMonthly
S-02Onboarding lead time for a critical third partyMedian calendar days from request to contract signature for critical relationships.SupportingMonthly
S-03Contracts in the central repositoryShare of known contracts stored in the repository with complete metadata.SupportingMonthly
S-04Renewal notice lead timeMedian days between renewal decision and the contractual notice deadline.SupportingMonthly
S-05Third parties reporting against SLAShare of critical third parties delivering agreed service reporting on schedule.SupportingMonthly
S-06Assessment reuse rateShare of assessments satisfied by an existing certification or a shared assessment rather than a new questionnaire.SupportingQuarterly
S-07Cost of the assurance programme per critical third partyTotal programme cost divided by the number of critical relationships assessed.SupportingAnnual
P-01Due diligence completed before signatureShare of new contracts where risk assessment was completed and recorded before the signature date.PrescriptiveMonthly
P-02Approved clause library usageShare of new contracts drafted using the approved clause set without unlogged deviation.PrescriptiveQuarterly
P-03Screening coverage at onboardingShare of new third parties screened for sanctions, adverse media and beneficial ownership before onboarding.PrescriptiveMonthly
P-04Criticality tiering completenessShare of active third parties carrying a current criticality tier.PrescriptiveMonthly
P-05Policy training completionShare of contract owners who have completed third party risk training in the last 12 months.PrescriptiveQuarterly
P-06Subcontractor disclosure obtainedShare of critical contracts where material subcontractors are disclosed and recorded.PrescriptiveQuarterly
P-07Register accuracy at register closeShare of register entries reconciled against accounts payable at period close.PrescriptiveQuarterly
D-01Incidents attributable to a third partyNumber of operational or security incidents where a third party is the identified cause.DetectiveMonthly
D-02SLA breaches per quarterCount of contractually defined service level breaches, split by severity.DetectiveQuarterly
D-03Expired certifications or evidenceNumber of third parties whose required certification or evidence has lapsed.DetectiveMonthly
D-04Findings reopened after closureNumber of assessment findings closed and later reopened within 12 months.DetectiveQuarterly
D-05Contracts auto-renewed without reviewNumber of contracts that renewed automatically with no documented review.DetectiveQuarterly
D-06Unapproved third parties in useNumber of active suppliers identified in payments data but absent from the register.DetectiveQuarterly
D-07Concentration driftNumber of critical services where a single provider's share grew more than ten points year on year.DetectiveAnnual
What members receive

The full library as a spreadsheet, with formula, data source, owner, tolerance bands and a worked example per indicator.

How to use it

Pick no more than eight key indicators. Everything else is supporting evidence for those eight.

Contribute

Definitions are revised twice a year by the KPI working group. Corporate members hold a seat.

Become a member Notify me on version 1.0