The Center for Financial Professionals recently conducted a global survey to help benchmark some of the key questions that can indicate the status and health of your third party risk/supplier risk/vendor risk program.
The results of this survey have been collated and a complimentary copy of the completed survey report will be available to participants and the wider third party risk community to support education and benchmarking.
Third party risk management (TPRM) is in the relatively early stages of its journey of development as a discipline. What best practice is, how regulators around the globe are approaching TPRM, and in which ways TPRM intersects with various teams across an organization, are questions to which the answers are continuing to evolve. TPRM teams are challenged with putting in place a robust management framework and meeting compliance targets while the world around them morphs at stunning speed—regulations, the business environment, the digital environment and risks.
This new survey – conducted during March and April 2018 – is designed to help organizations benchmark some of the key areas of their TPRM programs. There were 211 respondents to the survey, which explored a broad range of issues such as:
- Levels of program maturity
- Whether third party risk programs have the appropriate funding for people, tools and innovation.
- What is the typical organizational structure?
- How are third party risk professionals remunerated?
- What are the greatest challenges and opportunities associated with third party risk management?
The survey is intended to be a voice for practitioners, providing insight into the practical reality and challenges facing third party risk teams in this rapidly evolving discipline. It should be noted that the majority (80%) of respondents were from the financial services and insurance industries, so results are more representative for these organizations. We would like to extend our sincere thanks to all those that participated. The findings are intended to help firms develop their road-map to maturity, and help with planning, resourcing and direction.
The results show that TPRM teams recognize that they face significant implementation challenges, and that they worry about their ability to keep up with the velocity of change. Yet, they are also optimistic about their ability to deliver true value to the business as they build out their TPRM programs – through having a golden source of data, improved analytics, and better reporting about their third parties.