Welcome to this week’s Third Party Thursday! My name is Branan Cooper and I’m the Chief Risk Officer here at Venminder.
Today let’s talk a little bit about what it means when we say third party risk management framework. We will go through a few of the basic concepts and you can certainly learn more on our website.
Third party risk management is a vital part of an overall enterprise risk management (ERM) program. Third party risk management supports and defines numerous other categories of risk management.
For example, your key service providers probably help to define how you manage your operations and thus part of operation risk management.
Third party risk is also a key portion of enterprise risk but its certainly not alone. ERM also considers all the other types of risk the institution grabbles with. Similarly, the companies you do business with are part of your overall strategy and they either mirror, bolster or detract from your overall reputation.
In other words, they also help to either help or hurt your strategic risk and your reputation risk. The list certainly goes on from there but I think that gives you a good idea how third party risk is a key component of enterprise risk, but its certainly not the only part.
Now within third party risk there are other key elements all clearly laid out in the guidance and all are essential to a well-managed third party risk program.
I'm Branan Cooper and thank you for listening! If you haven't already, subscribe to the Third Party Thursday series.