The value of third-party risk management (TPRM) is underscored by the results of the EY 2023 Global Third-Party Risk Management Survey. Nine in 10 respondents say their organization has directly invested in their TPRM program. Those that have report a better understanding of risk and optimized capabilities and effectiveness.
Companies recognize that each third-party relationship brings potential risk, said Joseph Kelly, EY Oceania Third-party Risk Leader. “The only way to completely zero out your third-party risk is to not work with third-parties, but that’s not going to happen. So it’s more about, ‘How do you identify, manage and mitigate?’ We’re moving from the era of just identification into management and mitigation.”
While some organizations rely on email questionnaires, manually updated spreadsheets and sample data to track third-parties, many organizations are turning toward a centralized and data-driven approach to support strategic risk management decisions. They want to capture a sophisticated picture of overall risk and use additional capabilities, such as automation and external reports, that deliver real-time information.
Using this approach,…
