Manage Your Third-Party Risk,
Don't Let It Manage You
While effective risk management procedures are important, companies cannot lose sight of underlying primary business objectives. Hatfield Advisory is a valuable resource in helping you develop and enhance the efficacy of your TPRM program.
Third-party risk management serves a critical function to the business by ensuring compliance with a wide range of regulatory requirements and more importantly, protecting businesses from ever-increasing risk factors across multiple dimensions:
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Operational / financial
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Legal / regulatory
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Information / physical security
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Business continuity
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Geographic
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Reputational
Too many organizations continue to apply a one-size-fits-all approach to third-party risk management, which is often inefficient and ineffective. Key considerations when establishing a TPRM program include:
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It is important to establish a rule-based risk model that factors in an organization’s risk appetite as well as risk tolerance.
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In reviewing inherent and residual risk procedures, it is critically important to holistically assess inputs, triggers, and workflow procedures to eliminate redundancies and reduce operational overhead.
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In addition to point-in-time risk assessment evaluations, organizations should employ ongoing risk-sensing measures that provide real-time alerts based on social media sentiment, negative news events, corporate actions, company litigation, and more.
As a trusted partner, Hatfield Advisory can assist in optimizing your risk procedures while ensuring compliance with various regulatory requirements.