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Extended enterprise risk management survey 2019
Federated structures are becoming the most dominant operating model for third party risk management, underpinned by centres of excellence and shared services.
More than two-thirds (69%) of respondent organisations say they adopt a federated model and only 11% of organisations are now highly centralised, down from 17% last year.
Organisations are increasingly using centres of excellence and shared services. More than half (53%) of organisations are using centres of excellence and 38% have shared service centres. Investments in shared assessments and utilities, and managed services models, are also increasing. And co-ownership of EERM budgets, where organisations retain centralised control but with stronger engagement and collaboration with business unit leaders, is also emerging as a new trend.
Robust central oversight, policies, standards, services, and technologies combined with accountability by business unit and geographical leaders is a pragmatic way to proceed.
A centralised yet collaborative approach could generate considerable value, including financial benefits, efficiency gains, improvements in quality and consistency of rigor through controlled agility.
Download the full report for further insight, including industry and geography highlights.