{"id":116308,"date":"2026-10-11T06:34:39","date_gmt":"2026-10-11T06:34:39","guid":{"rendered":"https:\/\/staging2.zycus.com\/glossary\/?p=116308"},"modified":"2026-10-11T06:34:39","modified_gmt":"2026-10-11T06:34:39","slug":"fourth-party-risk","status":"publish","type":"post","link":"https:\/\/www.zycus.com\/glossary\/fourth-party-risk","title":{"rendered":"Fourth-Party Risk"},"content":{"rendered":"

What is Fourth-Party risk?<\/span><\/b>\u00a0<\/span><\/h2>\n

Fourth-party risk<\/span><\/b> is the risk that comes from your suppliers’ own suppliers and subcontractors: the parties you do not contract with directly but still depend on. A failure, breach or compliance problem at a fourth party can disrupt your supply even when your direct supplier looks healthy.<\/span>\u00a0<\/span><\/p>\n

Why it matters in procurement?<\/h2>\n

Many disruptions do not start with the supplier you can see. A fire at a component maker, a breach at a shared software provider or a labor violation deep in the chain reaches you through a supplier you trust. Without visibility, you find out when your own deliveries stop.<\/span>\u00a0<\/span><\/p>\n

Regulators and customers increasingly expect companies to look beyond direct suppliers. <\/span>Supply chain due diligence laws<\/span><\/b> push buyers to understand risks deeper in the chain, though how far they must look varies by law. Rules such as the EU’s DORA address subcontracting by technology providers to financial firms directly.<\/span>\u00a0<\/span><\/p>\n

The core process \/ lifecycle<\/h2>\n