Active

Concentration Risk Framework

The organization shall establish a third-party concentration risk framework that defines the structures, processes, and practices for identifying, assessing, and managing concentration risks in the third-party ecosystem. The framework shall articulate how concentration risks are identified, assessed, and governed, providing the foundation for all third-party concentration risk management activities.

Requirement ID
TPR-006-R001
Parent Control
TPR-006
Domain Code
TPR

Requirement Details & Guidance

TPR-006-R001 · TPR-006
Why This Requirement Exists

This requirement exists to identify, assess, mitigate, monitor, report, review, and improve concentration risks arising from third-party, geographic, technology, and critical dependency concentrations, specifically addressing concentration risk framework, so that third-party risks remain identified, controlled, and aligned with organizational risk appetite.

Implementation Guidance

Establish and document the process for concentration risk framework. Define accountable owners, required inputs and outputs, assessment or approval criteria, review frequency, monitoring, reporting, exception handling, evidence requirements, and escalation paths. Apply the process consistently across relevant third parties based on criticality, data sensitivity, service dependency, and risk.

Practical Application & Audit Readiness

TPR-006-R001 · Field Guidance

Business Examples

    Common Audit Findings

      Common Mistakes

        Best Practices & Ownership

        TPR-006 · Recommended Approach

        Recommended Practices

          Typical Owner

          Cross-Mapped Regulatory Frameworks

          Harmonized Control Mappings
          FRAMEWORK CODE FRAMEWORK NAME & DETAILS FAMILY / CATEGORY VERSION ACTION
          IRDAI IRDAI Information & Cyber Security Guidelines IRDAI information and cyber-security requirements... Clause: §2.14-3.1 – Vendor IS classification; §2.14-3.4 – Periodic assessment; §1.8-III – Technology Risk Assessment Process
          India
          Guideline
          		 vLatest View →
          RBI-CSF RBI Cyber Security Framework / Master Directions RBI cyber-security requirements and directions set... Clause: 11) Vendor Risk Management – 11.2 Risk assessment for outsourcing critical processes and vendor/partner selection; 11) Vendor Risk Management – 11.4 Framework to assess, approve, review, control and monitor vendor/outsourcing risks and materiality
          India
          Regulation
          		 vLatest View →
          SEBI-CSCRF SEBI Cyber Security & Cyber Resilience Framework SEBI’s Cybersecurity and Cyber Resilience Framewor... Clause: 1.6 GV.SC: Cybersecurity Supply Chain Risk Management
          India
          Regulation
          		 vLatest View →
          DORA Digital Operational Resilience Act The EU Digital Operational Resilience Act establis... Clause: Article 29 – Preliminary assessment of ICT concentration risk at entity level Article 28(2) – ICT third-party risk strategy and review
          EU
          Regulation
          		 vCurrent View →
          NIS2 NIS2 Directive The NIS2 Directive establishes EU-wide cybersecuri... Clause: Article 21(3) – Supplier vulnerabilities, product/cybersecurity quality and secure development; critical supply-chain risk assessment results
          EU
          Directive
          		 vCurrent View →
          PCI-DSS PCI DSS PCI DSS is an industry security standard maintaine... Clause: 12.8.1 – A list of all third-party service providers; 12.8.2 – Written agreements with TPSPs are
          PCI
          Standard
          		 v4 View →
          COBIT2019 COBIT COBIT is an enterprise governance and management f... Clause: 4.2 – Align, Plan and Organize (APO) > APO10 – Managed Vendors > APO10.04 – Manage vendor risk.
          COBIT
          Governance Framework
          		 v2019 View →
          NIST-CSF NIST Cybersecurity Framework (CSF) The NIST Cybersecurity Framework provides high-lev... Clause: GV.SC – Cybersecurity Supply Chain Risk Management | GV.SC-04 – Suppliers are known and prioritized by criticality GV.SC – Cybersecurity Supply Chain Risk Management | GV.SC-07 – The risks posed by a supplier, their products and services, and other third parties are understood, recorded, prioritized, assessed, responded to, and monitored over the course of the relationship
          NIST
          Framework
          		 v2 View →
          NIST80053 NIST SP 800-53 NIST SP 800-53 Rev. 5 presents control families, i... Clause: 3.20 – SUPPLY CHAIN RISK MANAGEMENT; SR-2 – SUPPLY CHAIN RISK MANAGEMENT PLAN, SR-6 – SUPPLIER ASSESSMENTS AND REVIEWS
          NIST
          Control Catalog
          		 vRev. 5 View →
          NPCI-ISR NPCI Information Security Requirements NPCI information-security requirements define cont... Clause: Governance Controls; Policy, Roles and Risk Linkages – Cyber Risk Management programs
          India
          Standard
          		 vLatest View →
          SOC2 SOC 2 Trust Services Criteria SOC 2 is an independent examination and reporting... Clause: CC9.2 – Risk Mitigation – The entity assesses and manages risks associated with vendors and business partners. CC9.1 – Risk Mitigation – The entity identifies, selects, and develops risk mitigation activities for risks arising from potential business disruptions.
          AICPA
          Audit Framework
          		 vLatest View →

          Parent Domain Context

          Governance Domain Baseline
          Domain Name:
          Third-Party & Supply Chain Security (TPR)
          Purpose:
          To manage the security and privacy risks associated with third-party vendors and partners.
          Scope:
          Enterprise
          View

          Parent Control Context

          Control Baseline
          Control Name:
          Third-Party Concentration Risk Management (TPR-006)
          Summary:
          Establishes concentration risk management including critical dependency identification, concentration assessment, geographic concentration, technology concentration, mitigation planning, monitoring, reporting, review, and continuous improvement.
          Business Description:
          Establish and maintain processes to identify, assess, monitor, and manage concentration risks arising from dependence on critical vendors, cloud providers, outsourced services, technologies, or geographic locations.
          View