Identification and management of third-party risk is a constant challenge for all companies conducting business overseas – including fund managers and other organizations. At compliance conferences, the speakers up on the dais are almost always from large organizations with significant compliance resources, making benchmarking difficult for the compliance stakeholders at mid-market companies who make up much of the audience. In a guest article originally published in the Hedge Fund Law Report’s sister publication – the Anti-Corruption Report – William Semins and David Peet, partners at K&L Gates, provide practical advice for those who feel that the standards set at those conferences and in other venues are unattainable on their limited budgets back home. Semins and Peet explain that, through dynamic risk assessment, resource allocation and communication, mid‑sized firms can effectively manage third-party risk even with mid-sized resources. Although originally aimed at compliance professionals at mid-market companies, the lessons contained in this article are wholly applicable to compliance staff at mid-sized hedge fund managers that may lack the resources of their larger counterparts. For more on mitigating operational risks, see “Fund Managers Must Supervise Third-Party Service Providers or Risk Regulatory Action” (Nov. 16, 2017); and “Challenges and Solutions in Managing Global Compliance Programs” (Oct. 5, 2017).