Diligent buys 3rdRisk to boost AI vendor risk tools

Diligent has acquired 3rdRisk, adding an AI-native third-party risk management product to its governance, risk and compliance software portfolio.

The deal brings 3rdRisk's tools for vendor profiling, assessments and contract analysis into the Diligent platform. Diligent said the addition gives risk and security teams more visibility into external suppliers and dependencies. The company also said it shortens the time required to reach audit readiness.

Third-party risk management has grown in profile as organisations rely on larger networks of technology suppliers and service providers. Many boards have increased oversight of vendor risks after high-profile incidents linked to supply chains and outsourced services. Regulators have also placed more focus on resilience, cyber security and outsourcing controls.

Scott Bridgen, General Manager, Risk and Audit at Diligent, said the combined product set would address complexity across vendor ecosystems.

"Organisations are facing increasing volume and complexity of risks across their vendor ecosystem," said Scott Bridgen, General Manager, Risk and Audit at Diligent. "By combining Diligent's AI platform with 3rdRisk's third-party risk management capabilities, we're delivering the most holistic solution that spans from the boardroom to the extended vendor landscape. Together, Diligent and 3rdRisk provide a unified, AI-driven view of risk that helps organizations govern with confidence and address vendor dependencies that have become board-level priorities."

Platform changes

Diligent positions its software suite around governance, risk and compliance management across boards, executives and operational teams. 3rdRisk focuses on third-party risk management and IT vendor risk. Its product includes automated vendor profiling and assessment workflows. It also analyses documents such as contracts and certifications.

Diligent said the 3rdRisk technology provides a near real-time view of an organisation's external ecosystem and how critical vendors are performing. It said the platform can reduce the time taken to prepare for audits from quarters to weeks.

The acquisition also expands Diligent's product coverage in an area that has become more closely tied to cyber risk management. Many organisations now review third-party exposure as part of broader security programmes. That work often spans procurement, IT, risk, compliance and legal teams. It also links to controls around supplier onboarding, periodic assurance, and continuous monitoring.

AI product push

Diligent has described the acquisition as part of a broader programme of AI development across its product set. The company cited several recent product launches that apply automation and machine learning to governance and risk workflows.

Those launches include GovernAI, which Diligent said streamlines governance workflows. The company also highlighted AI Risk Essentials for enterprise risk management and AI-enhanced Diligent Entities for entity and subsidiary management. It also referenced ACL AI Studio for audit, risk and compliance teams.

3rdRisk direction

3rdRisk was founded in the Netherlands and markets its product as AI-native. The company said it built the platform with a focus on removing manual steps from vendor risk processes while keeping human decision-making in place.

Its product is used across industries including retail, financial services and technology. The company also references regulatory frameworks such as DORA and NIS-2 in its work around supplier risk and compliance processes.

Bram Ketting, co-founder and CEO at 3rdRisk, said the deal would extend the company's reach while keeping its current product approach.

"3rdRisk was founded with the belief that AI will transform how organizations approach vendor risk - not by replacing human judgment, but by eliminating the manual processes that prevent teams from focusing on what matters most," said Bram Ketting, co-founder and CEO at 3rdRisk. "Joining Diligent accelerates our ability to deliver on that vision on a global scale while maintaining the product focus and domain expertise that our customers value."

Diligent did not disclose financial terms. The company said it expects the combination to broaden its third-party risk management offering as customer demand grows for more structured oversight of vendor relationships and outsourced services.