Gaining ground:A digital path to third party oversightGlobal third party risk management survey 2021 DOWNLOAD THE REPORT
Our latest research shows that the pandemic has led many organisations to make digital advancements in their approach to third party risk management (TPRM).
2021 key themesRisk intelligence is a key funding priorityThe pandemic highlighted the need for real-time intelligence on third parties. Our survey showed that more than half of organisations want to improve real-time information, risk metrics and reporting in the year ahead so they have a single, up-to-date picture of their third parties and the risk they may pose. Digital risks are a top emerging concernDigital risks arising from increasingly digitised ways of working are a top emerging concern in third party risk management. This is followed by financial resilience of third parties, and the ability to manage diversity and inclusion, health and safety, the environment, and climate change. The pandemic was a wake-up call to improve third party risk management Many organisations were unprepared when COVID-19 became a global pandemic. Ten months on, almost half of our survey respondents still felt they were in ‘respond’ mode – they were still reacting to the need for business continuity and resilience throughout their supply chain, customer relationships and digital capabilities. We expected more organisations to have learnt from their experiences and used them to start to inform their TPRM capability by then. The pandemic has disrupted the TPRM maturity journey for many but it has been a wake-up call for organisations to invest in the year ahead. Cost pressures are preventing insourcingCOVID-19 led many organisations to consider taking outsourced business activities back in-house because they had concerns about third party failure or losing control of outsourced activity. This idea largely didn’t progress as organisations feel too much pressure to save costs or lack internal capability to deliver the activities. Pressure to save costs by outsourcing business activities:Want to know more?Read our report to discover the other latest trends in third party risk management.DOWNLOAD REPORTGet in touchTo discuss the findings of our 2021 third party risk management survey and how they apply to your organisation, please get in touch with one of our specialists.Kristian Park is global leader for Extended Enterprise (EE) and a partner in Deloitte UK.Danny Griffiths is a Director in our London based Extended Enterprise (EE) team.Sanjoy Sen is the head of research for third party risk management at Deloitte LLP.Find out how we help organisations with their approach to third party risk management.Previous third party risk management survey reportsThird party risk management survey – 2020 Be responsible and effectiveDeloitte’s fifth annual third party risk management (TPRM) survey showed that for the first time in five years, a desire to be a responsible business that effectively manages environmental and social issues throughout its supply chain is a key reason companies invest in TPRM.Third party risk management survey – 2019 All together nowDeloitte’s fourth annual third party risk management (TPRM) survey shows there is renewed focus on maturing TPRM practices within most organisations. This appears to be driven by a recognition of underinvestment in TPRM coupled with mistrust of the wider uncertain economic environment.Third party risk management survey – 2018 Focusing on the climb aheadDeloitte’s third annual third party risk management (TPRM) survey aims to capture improvements in maturity of TPRM frameworks with a specific focus on the business case and investments in TPRM.Third party risk management survey – 2017 Overcoming the threats and uncertaintyDeloitte’s second annual third party risk management (TPRM) survey covers a number of issues that span the management of the extended enterprise and related risks in a rapidly changing environment.Third party risk management survey – 2016 The threats are realThe survey results show that investment by organisations in third party risk management (TPRM) has increased year on year and that organisations are implementing or refining their TPRM processes and frameworks.