Prime Factors Leading to

TPRM Revolution
 Building and extending relationships with third parties in order to
achieve long term business goals can create complex supply
chains and drives third party risk. Here are the top factors driving a
revolution in third party risk management.
Factor #1 RELIANCE

There is an increased reliance on third parties. Organizations globally depend on third parties to deliver business
critical processes and services.

Third party vetting third/fourth parties

organizations tasks outsourced

main issues in as their are with

It is critical for organizations to understand the extent of its dependencies on third parties and ensure that these
third parties are operationally sound, especially from an information security standpoint.
Factor #2 COMPLEXITY

The increased reliance on third parties lead to increased complexity of oversight.

Its no longer sufficient to know just your third parties, but the fourth and
Reliance Complexity fifth parties too, as well as thoroughly understand the products and
services they provide.

According to @PwC_LLP

fourth party risk

rely on to manage

organizations third party

The complete supply chain of risk must be understood in order to properly assess an institutions enterprise risk profile.
Factor #3 REGULATION

Financial and many others to manage

Conduct Authority have issued

Monetary Authority
of Singapore guidelines third party

The organization must know your third parties and every aspect of their
risk management lifecycle including crucial aspects related to due
diligence and ongoing monitoring.
Office of the
Comptroller of Currency
Factor #4 OUTDATED PROCESSES

According to a recent study by @AiteGroup

of the still use to support

firms spreadsheet

It is not uncommon for a third party to receive a spreadsheet questionnaire from an institution with 28 different tabs
to complete. Thats a long and arduous task to comply with for every firm a third party does business with.
Factor #5 STANDARDS

While regulators across the globe have issued guidance around third party risk management, few if any have
issued any mandatory rules.

For conducting due diligence workflow efficiencies

to support

do exist and
there is a lack of

tools and questionnaires flexible technology

Reference: https://www.finextra.com/blogs/fullblog.aspx?blogid=12139