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Third Party Governance & Risk Management 2016 Global Survey
The threats are real
Welcome to our 2016 global survey on Third Party Governance and Risk Management (TPGRM). In this survey, we provide the results from over 170 organisations on the key issues and trends impacting their approaches to managing and mitigating third party risk.
Key take outs:
The third party ecosystem
1. As dependence on third parties becomes increasingly critical, organisations are being compelled to rapidly “catch-up” in enhancing the maturity of their TPGRM processes.
2. The drivers for third party engagement are progressively shifting from a focus on cost to a focus on value, reflecting organisational recognition of the strategic opportunity that third parties can create for them.
Managing third party risk
3. Third party risk incidents are on the increase with customer service disruption and regulatory breach being considered the top risks.
4. Increased monitoring and assurance activity over third parties is believed to significantly reduce third party risk.
5. Organisational commitment to third party risk management is not supported by confidence in the related technology and processes.
Third party governance
6. Third party risk is starting to feature consistently on Board agendas with CEO/ Board-level responsibility in the more progressive organisations or those operating in highly regulated environments.
7. Visits to third party locations are considered the most effective method to gain assurance over third party management.
8. Most organisations are mandating consistent third party governance standards amidst increasing decentralisation of operating units. Technology and delivery models
9. Existing technology platforms for managing third parties are considered inadequate.
10. Organisations are in the process of deciding between centralised in-house models and external service-provider based models for third party monitoring