A New Model for Managing Third-party Risk – I covered why legacy risk management approaches and quickly stale assessment data are no longer effective in today’s dynamic risk environment. Now to overcome these shortcomings and improve operations resiliency, leading CROs are seeking to modernize their approach to third-party risk management by accelerating the adoption of continuous monitoring for real-time risk intelligence.
Today’s technology that combines RPA, ML, AI with data science can enable true continuous monitoring and to provide the real-time comprehensive intelligence CROs and their teams need to ensure business continuity and resiliency. Even better this technology stack can be leveraged to detect, confirm, and predict risk events, continuously and accurately at a fraction of the cost of ineffective legacy practices.
Obviously selecting the right TPRM solution is critical to achieve your objectives. Here are a few questions to consider when evaluating TPRM solutions today:
1. Does it monitor a full-spectrum of risk domains – beyond Financial and Cyber - continuously for ‘always-on’ coverage?
2. Does it provide real-time intelligence for early warning to power effective proactive risk mitigation actions?
3. Does it bring leading indicators to our risk team’s immediate attention to enable focus on most today’s most critical risks?
4. Can the continuous, full-spectrum risk intelligence be integrated into our existing third-party risk/GRC architecture to deliver the continuous 360° situational awareness needed to enable enterprise resilience?
Building on these questions, I’ve put together a TPRM Solution Evaluation Checklist (below) that I hope is useful in your evaluation of solutions available in the market.
The right TPRM solution can enable CROs and their teams to move faster, do more with less, prioritize and act proactively and confidently to avoid disruptions and ensure continuity and operations resilience.