Episode 48 — Procurement & Third Party Risk

Most organizations rely on third-party AI systems and services, creating exposure to risks outside their direct control. This episode introduces procurement and vendor risk management as critical components of responsible AI. Learners explore risks such as biased vendor models, weak security practices, unclear licensing, and lack of transparency in black-box systems. The concept of shared responsibility is emphasized, with organizations remaining accountable for outcomes even when vendors supply technology.

Examples highlight governments facing backlash from poorly vetted welfare AI systems, financial institutions negotiating stronger contractual protections for fraud detection tools, and healthcare providers requiring vendors to meet data privacy standards. Learners are introduced to tools such as vendor questionnaires, contractual clauses on fairness and transparency, and audits of third-party practices. By the end, it is clear that procurement policies and third-party risk management are essential for maintaining accountability and protecting stakeholders. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your certification path.