Effective third-party risk management recognizes that vendor relationships bring both value and potential risk exposure. That’s why integrated risk management — coordinating efforts and data across operational, compliance, and risk and control functions — is so important. Financial institutions without an integrated approach often contend with significant challenges and consequences, ranging from compliance penalties to data breaches to reputational damage, because they don't have a holistic view of their third-party network and the risks…
An effective internal audit function is a pillar of good corporate governance, playing a key role in an integrated governance, risk, and compliance (GRC) strategy. How Internal Audit Supports Sound Governance Through independently assessing the effectiveness of GRC processes, internal auditors support their organizations in fostering accountability and achieving objectives. In its position paper on internal auditing’s role in corporate governance, the Institute of Internal Auditors (IIA) highlights three ways audit functions bring value…
From supply chains to cybersecurity to climate, managing today’s risks remains a struggle for organizations of all sizes and sectors. And that’s not likely to change. More than 40% of respondents to the World Economic Forum’s Global Risks Report said that they anticipate a “consistently volatile [risk environment] with multiple surprises” over the next years. Many organizations continue to “operate with separate or inconsistent risk, governance, communication, and reporting strategies as well as misaligned…
What Is Third-Party Risk Management? Third-party risk management (TPRM) involves creating a framework of policies, processes, and tools to manage and monitor the risk arising from vendors and other external business relationships. Proposed regulatory guidance on managing third-party risk from the FDIC, Federal Reserve Board, and OCC defines the third-party risk management lifecycle for financial institutions as including the following stages: Planning: Developing a plan that outlines the banking organization’s strategy, identifies the inherent…
Creating and implementing an effective risk and resilience management program can be a difficult task. But a successful strategy equips organizations to gain an integrated view of business processes and gather risk intelligence. When organizations get bogged down in manual risk management processes, there is little time for analysis and objective setting. Related Reading | Why Manual GRC Processes Don’t Work > Any successful risk and resiliency strategy will need to be sustainable, equipping…