Discover why managing third-party risks is crucial for financial services firms and how it can protect your organization from significant threats.
TPRM has become more crucial now than ever. Failing to monitor and control risks across the third-party engagement lifecycle can lead to security or compliance gaps.
– Cyber and Privacy Risk – Compliance & Regulatory Risk: – Digital Risk
Effective TPRM programs are essential to manage risks throughout the third-party lifecycle, preventing security and compliance gaps.
- Risk-based segmentation with suitable controls to address risk. - Assess regulatory compliance based on third-party activities. - Capture, track, and report compliance and performance metrics. - Independent, cross-functional teams for oversight and decision-making. - Comprehensive risk management tools with clear ownership across business units.
- Board and C-Suite engagement. Maintain an updated third-party inventory. - Adopt risk models aligned with the organization’s risk appetite. - Define roles and responsibilities clearly. - Risk management activities across the third-party lifecycle.
Stay proactive in managing third-party risks by continuously adapting to technological advancements and regulatory changes.
Proactive third-party risk management ensures financial firms remain secure, compliant, and resilient, safeguarding their operations and reputation.