It’s unclear when the negative effects of COVID-19 will be fully played out. One thing is certain though: The traditional third-party risk management, or TPRM, practices that financial institutions have relied on are inadequate going forward.

Third-party risk mitigation decisions relying on static data collected during point-in-time risk assessments are inadequate. Leading banking and financial institutions are recognizing the need to reset their TPRM programs. Making the shift to continuous risk monitoring through a proactive risk operations center (ROC) enables effective risk anticipation to mitigate or even avoid costly business disruptions.

In this article in the ABA Risk and Compliance magazine, Atul Vashistha, founder of Supply Wisdom, talks about why traditional point-in-time risk assessments are passé and why mature risk organisations are embracing risk operations center (ROC) to prepare for the inevitable catastrophic risks.