Third Party Risk

Third-party risk is not actually a risk, it’s an exposure to all risk areas, from operational and reputational to cyber and IT. Therefore, it cannot be managed in a silo.

Financial services third-party risk management is no longer just about operational efficiency, it’s a regulatory compliance imperative.

This issue's key takeaways: Banks in the US and EU have clear expectations and guidelines for managing third-party risk: the Interagency Guidance on Third-Party Relationships and the Digital Operational Resiliency Act (DORA).These regulations expect banking organizations to perform diligent financial oversight and analysis of third-party partnerships.Banks must manage third-party financial conditions throughout the entire relationship lifecycle to maintain regulatory good standing and avoid financial danger. Comprehensive assessment and analysis tools are key to proactively mitigating risk.

At RapidRatings, we work with thousands of Supply Chain and Third-Party Risk professionals who wrestle with impending tariffs.