Why is TPRM crucial?

While third party vendors, affiliates, and sub-contractors facilitate your growth, they also put your institution at risk.

We get it

Third party risk management (TPRM) can feel like a burden.

While third party vendors, affiliates, and sub-contractors facilitate your growth, they also put your institution at risk.

Who are you really doing business with?

Here are just a few of the ways that third party companies can cause devastating consequences for your institution:

Data Breach

Hackers, natural disasters, acts of terror, and more could expose your customers’ data to unauthorized parties.

Change in Financial Stability

Your vendor may undergo significant business changes, such as mergers, acquisitions, joint ventures, or divestitures—all of which could affect your institution and customers.

Political Exposure

Your vendor could be located in a country that has a negative relationship with the U.S. Or someone who works for your vendor could be a politically exposed person.

Conflict of Interest

Someone in your institution could have a relationship with someone who works for the vendor and your institution could receive unauthorized discounts.

If these scenarios (or others) happen with one of your vendors, you risk ruining your reputation (ex. seeing your institution’s name in the news), losing customers, and being shut down.

Fortrex is ready to help!

We’ll help you determine the best solution(s) for your situation—to ease the stress of TPRM and keep your institution compliant.

Still not convinced that a strong TPRM program is crucial?

Check out these startling facts:

57% of respondents in Financial Services said that they need 2-3+ years or more to achieve their desired state of Extended Enterprise Risk Management Service, which includes TPRM1.

Financial Services is an industry that has seen the most notable increase in dependence on third party services2.

81% of respondents in Financial Services reported that they don’t have appropriate knowledge and visibility over their sub-contractors, i.e. 4th and 5th parties1.

The Financial Services sector has the second highest costs associated with data breaches, at $206 million, just behind healthcare at $408 million2.

1. Focusing on the climb ahead: Extended enterprise risk management survey 2018, Deloitte, 2018
2. 2018 Cost of Data Breach Survey: Global Overview, Ponemon Institute, July 2018

Overwhelmed by TPRM responsibilities?

Our team of experts can take them off of your hands.

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