Institutions’ oversight of TPRM has improved, EY says
Most financial institutions have significantly upgraded and enhanced the governance and oversight of their third-party risk management (TPRM) functions, according to Ernst & Young.
EY’s Global Financial Services Third Party Risk Management Survey showed while TPRM across the global financial services sector had matured, challenges remained, specifically around technology integration and board reporting.
For example, nearly all organizations (96 per cent) have not reached the optimized level of technology integration, while 81 per cent were neutral or negative in terms of how well their technology integrates and captures risk for reporting, EY said.
Also, it said given that banks are subject to a higher level of regulatory scrutiny, their third-party risk management programs tend to be well-established and more mature and robust than those within insurance providers and asset managers.
Though TPRM program maturity continues to increase across the industry, six out of 10 firms are planning on spending more in 2018 on TPRM technology enablement, up from five out of 10 firms in 2016, EY said.
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
