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As regulators look to cyber, concentration, and fourth party risk, most third party risk programs still grapple with the foundations.
San Francisco, Calif. June 25, 2018. A global benchmarking survey published today, reveals that despite growing regulatory expectations about how companies manage the risks posed by their relationships with third parties, most companies are still struggling to achieve some of the most basic requirements.
Aravo Solutions and the Center for Financial Professionals (CeFPro) launched the results of the survey at two international events in New York and London this month, where they were discussed by leading practitioners across the financial services industry. The report is available at: Global Benchmarking Survey – Third Party Risk: A Journey Towards Maturity
The survey revealed that most third party risk management programs are in the early stages of maturity and are struggling to keep pace with the widening scope of regulatory expectation. In particular, increased regulatory focus on cyber-risk, concentration risk, and fourth parties, is not matched by most organizations’ ability to manage these emerging risks.
Kimberley Allan, CMO, Aravo Solutions said: “The results show that third party risk management teams recognize that they face significant program implementation challenges, and that they worry about their ability to keep up with the velocity of change and expanding regulatory expectation at the same time as they lay the foundations of their programs.”
Andreas Simou, Director, Center for Financial Professionals said: “This detailed benchmarking survey provides insight into the practical reality and challenges facing third party risk teams in this rapidly evolving discipline. The findings will help firms develop their road-map to maturity, and help with planning, resourcing and direction.”
Key results from the survey include:
In addition to these areas of exposure, the survey found that there was a clear need for better reporting, with the majority of respondents unable to produce standard third party risk reports completely and quickly. Contributing to this challenge was the lack a of a single inventory, the use of disparate systems across organizations, lack of integration between systems, and technology limitations.
An infographic detailing some of the survey’s key findings can be found at info.aravo.com.
About the survey
The research for this new survey was conducted during March and April 2018 and was constructed by Aravo Solutions and distributed online by the Center for Financial Professionals, an impartial and independent financial research and event organizer. The survey had 211 responses from third party risk management professionals around the globe. Some 37% of responses were from US-based companies, with another 10% based in Canada. The United Kingdom was the location for the headquarters of 24%, while the rest of Europe was the home for 20% of organizations. While a broad range of industries were represented, the majority of responses for this survey were from the financial services industry – nearly 8 out of 10. Slightly more than one-third of respondents were at the Senior Vice President (SVP), Vice President (VP), or Director level within their organizations. Another 12% were either from the C-suite or were sitting on the board of directors. One third of respondents were managers, while 13% were analysts within the TPRM discipline.
About the Center for Financial Professionals (CeFPro)
The Center for Financial Professionals (CeFPro) is an international research organization and the focal point for financial risk professionals to advance through renowned thought-leadership, unparalleled networking, industry solutions and lead generation. CeFPro is driven by and dedicated to high quality and reliable primary market research; helping us provide our audience with invaluable peer-to-peer conferences such as our flagship Risk EMEA and Risk Americas series. CeFPro also boasts knowledge sharing platforms, such as: Risk Webinars, Research Reports, and Risk Insights. Risk Insights are written by the industry for the industry and now covers online articles, a quarterly Risk Insights Magazine, and Risk Insights TV. Learn more at Cefpro.com and Risk-insights.com
Aravo Solutions delivers market-leading cloud-based solutions for managing third party governance, risk, and performance. We help companies protect their business value and reputation by managing the risks associated with third parties and suppliers, and to build business value by ensuring that their third-party relationships are optimized.
Since 2000, leading global brands across a diverse range of industries have counted on Aravo for their end-to-end enterprise supplier and third-party risk management. Aravo has also distilled this experience and best-in-class technology into rapid time-to-value applications that help companies manage a wide range of programs including: anti-bribery and anti-corruption, responsible sourcing, data privacy, information security, GDPR, financial services regulatory compliance, and know your third-party programs.
Providing unrivaled regulatory agility and ease-of-use, together with actionable executive reporting, Aravo supports a user base of 136,000 corporate users, managing more than 4.5 million third party users in 36 languages and 154 countries. Aravo is headquartered in San Francisco, with offices and partners across the US, Europe, and Asia.
Aravo has been recognized with GRC 20/20’s Value Award for Third Party Management for providing measurable value in GRC efficiency, effectiveness and agility, and with the GRC 20/20 Innovation Award for Aravo for GDPR. Aravo was named as a Category Leader with the highest “Completeness of Offering” of any provider in the Chartis RiskTech Quadrant® for Third Party Risk Management Solutions 2017 and was named a Challenger in the 2017 Gartner® Magic Quadrant for IT Vendor Risk Management.