Third-Party Risk Management Isn’t Just for Financial Institutions

Video Transcript

Welcome to today’s Third Party Thursday! My name is Stephanie and I’m the Pre-Sales Technical Pricing Consultant here at Venminder. Today, we’re going to discuss why third party risk management isn’t just for financial institutions.

Third party risk management may be a practice most commonly associated with the financial services industry, particularly thanks to the regulatory guidance that has been issued by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) over the past several years since the financial crisis.

However, it’s not something that only financial institutions should worry about – it affects everyone. And, here are some reasons why:

1. Third party risk management, in its most fundamental forms, is a discipline that has been around for many years, under names such as quality assurance or vendor management or even elements of supply chain or procurement. 
   
   
2. While third party risk management may go by other names in other industries, the end goals are really much the same – to ensure the high quality and seamless delivery of product or service to a company or from a company to its customers.
   
   
3. Third party risk, when done well, can create a real strategic advantage for companies  as it allows for:
   - Control of costs
   - Comparison of quality
   - Real champion/challenger type strategies
   - Full identification of the risks associated with outsourcing a particular function

Again, I’m Stephanie and thank you for tuning in! Don’t forget to subscribe to the Third Party Thursday series.