Today’s business climate dictates that organizations will need to continue to rely on third parties to remain competitive and alleviate internal processing burden. All of these relationships present some sort of risk to organizations that requires managing and monitoring.
Venminder, a leader in third party risk management software and services, recently conducted its most comprehensive survey to date seeking to gain insights and trends for 2019 into how financial services and financial technology companies are managing third party risk. Today, the company announced the release of their findings in their third annual whitepaper State of Third Party Risk Management, providing a wealth of information into current processes and challenges being faced.
Highlights from the survey include:
- Vendor cybersecurity and fourth party vendors are top hurdles for 2019
- 73% believe third party risk management is getting more scrutiny by the regulators
- 72% find it challenging but manageable to secure business unit support for their vendor management program requirements
- 76% say they have updated their vendor management policy documents in the last year
- 76% believe there is a return on investment (ROI) from efficient vendor risk management
- 57% say they use the centralized operating model for their vendor management program
“The state of third party risk management is clear: regulatory expectations are increasing and companies across industries are scrambling to keep up with the changing landscape. Focusing on the tried and true basics of vendor management will only get you half way; you’ll need adequate resources and sophisticated tools to properly manage the risks outsourced service providers pose to your company,” said Branan Cooper, Chief Risk Officer at Venminder. “Done well, a third party risk management program can help a company better understand its risk and take steps to mitigate that risk and provide a real strategic advantage.”
Venminder advises that if creating or refreshing your vendor management program has not been high on your priority list, move it up the list. Vendor risk management must be an annual and “as needed” exercise that includes active involvement by the board and senior management.
The full survey findings are available to download on Venminder’s website by clicking here.
Venminder is the market leader in third party risk management solutions. Through the firm’s software and suite of outsourced services, Venminder has pioneered a new age in vendor management by dramatically reducing the workload essential to meeting today’s demanding regulatory requirements.
Venminder’s software organizes all things vendor-related and guides users through critical processes such as contract management, risk assessments, due diligence requirements, questionnaires and more. The firm also offers a popular suite of outsourced due diligence services which includes collecting documents and then assessing them for risk in cybersecurity, information security, business continuity/disaster recovery and financial health.
Jessica Carbino, Director of Marketing
Venminder | firstname.lastname@example.org