Third party risk management is relevant across all financial services sectors considering broad dependencies on third parties – whether vendors, suppliers, cloud service providers, FinTechs, BPO or intra-group arrangements with entities in other countries supporting key services. The regulator has recently been very strong on this topic, performing a range of supervisory, inspection and thematic reviews. With Covid-19 having a huge impact on global third-party supply chains, it’s more important than ever to risk assess the ability of third parties to continue to support critical functions. The key topics are summarised here and for more information, download our latest thought leadership using the button below.
These challenges can be divided into three key areas: third-party operational resilience, third-party financial resilience, and data security. They include difficulties in obtaining a broad third-party universal view to fully understand dependencies and vulnerabilities, and growing concerns over data security or data leakage due to third parties moving to remote working and access.
Immediate actions required include evaluating critical relationships for technology infrastructure challenges and financial health concerns, and analysing critical global dependencies and locations as countries go into and out of lockdown scenarios.
Conduct an assessment in three phases:
The focus is on execution now – but you also need to prepare for the next and beyond:
Explore our latest insights and thinking to support you in leading through these volatile times, and reach out if you have any questions.