Third-party risk has been growing, resulting from increased use of vendors as technology providers and service providers. Banks use third parties to help reduce costs, increase efficiency, and leverage expertise in specific areas. The addition of a third party can cause exponential increases in risk exposure because of the third party’s supplier risk.
Goals and Objectives
Establish an enterprise third-party risk governance and monitoring capability. Use common infrastructure and risk assessment methodology and technology to adequately evaluate third-party and fourth-party risks.
Hardware: Enterprise hardware
Services: Managed services and consulting
Software: Analytics, AI, and application platforms
Innovation accelerators: Cognitive machine learning
3rd Platform technologies: Big Data and analytics
Use Case Summary
Management and onboarding of third-party relationships will likely occur at the line-of-business level across an institution. However, the aggregation, measurement, and monitoring of risk associated with a third party will be centralized.