Third-party risk management (TPRM) has become critical to success in today's complex global business environment. Financial services institutions are now seeing third-party relationships as a key source of competitiveness and growth, making risk-based, enterprise-wide TPRM more important than ever amid increasing threats to business continuity, compliance, reputations and cyber security.
KPMG's Third-Party Risk Management Outlook 2022 report shows, however, that financial services businesses are struggling with significant TPRM issues that include a lack of skills, insufficient budgets, underperforming technology, evolving regulatory requirements and growing cyber threats. As our latest global research indicates, the outlook for financial services institutions shows no shortage of challenges -- and costly disruptions are likely to become more prevalent unless sector businesses take steps to improve TPRM.
Our findings should serve as a wake-up call on the need to reassess and enhance today's TPRM capabilities and operating models. As third-party ecosystems continue to grow in size and complexity, financial services institutions need to approach TPRM maturity in a more consistent and strategic manner that ideally relies on a centralized and refined service model.
