TPRM Survey Respondent Profile

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Thank you to the 114 risk professionals who completed the IT-TPRM.com survey on the impact of Digital Transformation on TPRM operations. The survey is now closed and we have initiated analysis of the results but wanted to share the typical profile or average demographics of the respondent.

Respondents to the IT-TPRM.com survey are:

  • Members of their TPRM organization
  • Work in the banking and capital market segment
  • On average, have $100 billion assets under management
  • Is being impacted by digital transformation
  • Cloud is the leading digital technology impacting operations
  • Primary operational focus is accelerating support of business operations
  • Most concerned about identifying 4th and 5th parties for business continuity
  • Believes regulators will increasingly focus on capacity and concentration of third parties

We will release final survey results and analysis next week!

Are TPRM Leaders Underestimating Blockchain Impact?

Digital Tech Analysis - Q2

Responses continue to stream in for the IT-TPRM.com survey on the impact of Digital Transformation on TPRM operations. We remain on track to share the full survey Mid-June!

The survey ask respondents to identify the digital technology dynamics impacting their organization currently or in the coming 12 months. To no surprise, Cloud, Cybersecurity  & Automation are consistently identified as the technologies of greatest impact. The surprise so far is how low Blockchain is trending as a key area of focus for TPRM leaders.

At the recent RMW GCOR conference, during the regulator panel they stated the areas of great focus and interest is Cloud, Automation & Distributed Ledger (Blockchain). Are TPRM leaders not seeing what is emerging on the horizon or not clear as yet how it will impact their operations? Share your thoughts! Please take 3 1/2 minutes to take the survey.

Take the Survey

 

IT-TPRM Survey: Impact of Digital Transformation

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Help us identify emerging best practices!

IT-TPRM.com has developed a targeted survey with the input and support of multiple TPRM leaders. The purpose of the survey is to identify emerging best practices being employed by TPRM teams to effectively meet the demands of digital transformation. Our plan is to share the complete research results by the end of June with the full TPRM community. Hopefully the results will help risk leaders fine tune their current digital agenda and bring enhanced value to the business.

Thank you for taking 4 minutes to answer the 10 questions on the survey. All results are anonymous and will be reported in aggregate.

Survey Link

 

ORM Leaders: Seize Control of Digital Transformation

pexels-photo-931911.jpegAs Operational Risk Management (ORM) leaders are rapidly establishing dedicated Technology Third Party Risk Management organizations, they are being challenged by their executives to address the accelerated pace of Digital Transformation. The need is to establish process, procedures, terms and assessments necessary to effectively assess risk of digital technology adoption, such as FinTech, while satisfying regulator expectations.

To be truly effective, Enterprise and Operational Risk leaders must seize the opportunity to establish themselves as strategic facilitator of the digital agenda. By doing so, ORM leaders reduce the strain on their organizations and enable improved focus and execution. Consider these steps to enable a comprehensive and effective Digital TPRM program.

1.       Facilitate a focused Digital Transformation dialogue across leadership

  • Include Corporate Executives, Business, Product, Procurement, Audit, Technology leaders to establish a common vision.
  • Get clarity – move beyond technology to specific third parties in each area of category

2.       Bring this detailed message to the operational leaders in each functional area.

  • Drive alignment between executive vision and operational execution
  • Challenge third party non-conformance

3.       Clarify ‘risk must-haves’ for third parties to establish Minimum Viable Risk (MVR) tolerance

4.       Establish process by which third parties are engaged with defined roles and responsibilities

5.       Create frequent reporting to enhance transparency, status, gaps and corrective measures

Creating a dedicated Digital TPRM program separate from or a sub-set of the Technology TPRM will create the focus necessary for ORM leaders to meet accelerating business time expectations with identified risk.

The Expanding Technology Third Party Risk Management Remit

pexels-photo-59197.jpegGlobal Banks and Financial Institutions are under severe pressure to reduce operating cost while at the same time deliver on a Digital Transformation agenda that enhances customer experience and produces new revenue streams through expanded product offerings. To meet this challenge, these organizations are increasingly turning to Automation (RPA/AI) to gain operational efficiency and FinTech platforms to satisfy their digital agenda; both introduce incremental risk to their enterprise risk profile.

This dynamic is forcing Enterprise and Operational Risk leaders to re-think the treatment of technology third parties. As technology solutions have expanded beyond IT and are engaged across operations, Technology Third Party Risk Management first line and second line teams are being challenged to move beyond vulnerability and resilience to address the full spectrum of an expanded technology portfolio. To do so, FLOD and SLOD will need to be dedicated, multi-discipline teams. FLOD focused on collaboration across key internal parties with SLOD providing oversight and coordination with Audit, Compliance and enterprise leaders.

Working closely with procurement, Technology TPRM leaders need to establish clear positions on Right of Survivorship, Change in Ownership, Termination and other likely events when dealing with micro-venture backed companies. This will enable rapid contracting establish consistent risk categorization and support regulator expectations.