In an increasingly interconnected global business environment, firms are becoming more reliant on third parties for critical operations, processes, and functions. Although these relationships can provide significant benefits, they also pose potential risks, ranging from ensuring compliance with regulations to addressing cybersecurity and data protection risks.
Management of risks associated with third-party relationships is a top priority for management and regulatory agendas. A survey conducted by KPMG that 73 percent of respondents confirmed that inefficiencies in their Third-Party Risk Management (TPRM) program exposed them to reputational risk.
The complexity of organisational structures and the multiple stakeholders involved in the management of third-party risk remains a key challenge to management teams.
