Today’s financial institutions are undergoing a transformation to modernize their organizations, increasingly relying on outsourcing operational tasks to third parties to increase efficiency. Many large financial organizations have extensive third-party
networks that consist of numerous suppliers and vendors. In fact, Gartner found that
60% of organizations work with over 1,000 third parties, and that number will only grow as businesses become more complex.
As financial organizations continue to lean on third parties, the significance of maintaining a strong risk management plan cannot be emphasized enough to manage risks more effectively and ensure regulatory compliance. Through this approach, financial organizations
can obtain a better understanding of their vulnerabilities to cyberattacks and focus remediation efforts accordingly, saving valuable resources by accurately identifying the most impactful threats.
The risk of third-party networks
Although third-party partnerships help simplify essential business functions, they also raise the stakes for financial institutions in terms of cyber risk. This can become especially complicated with so many entities and…
