Outsourcing and Third Party Risk Management (‘TPRM’) has become one of the key areas of focus for financial services organisations. In the latest global KPMG Third Party Risk Management Outlook survey, over 75 percent of respondents stated that TPRM was a strategic priority for their business.
This is reflective of the rapidly changing landscape the industry finds itself in; more than ever before companies are using third parties to deliver technology-driven services to customers, migrating to cloud-based solutions and transform their business.
Businesses are encountering challenges in the effective management of third party risks
- Insufficient resources and capabilities to manage all the third-party risks they face, against a backdrop of evolving risks and threats
- Inconsistent and ineffective approaches to identifying and managing risks across the lifecycle of a relationship or service
- Failure to harness the automation benefits from using technology and data for decisioning, monitoring and workflow
- Sustaining a complex operating model that spans multiple parts of the business