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Third party risk management

Create an ongoing and enterprise-wide risk management strategy which ensures third-party providers are a source of strength for your business – not a weak link.

SERVICE

Third parties are a key component of today’s increasingly complex, digital business eco-systems. Businesses tend to use a multitude of third parties in different ways to deliver goods and services and therefore failure of a third party to deliver is a significant source of risk.

Effective Third Party Risk Management is critical because the organization remains accountable to its customers and markets when third parties fail to deliver goods and services. Six in ten of our clients have suffered their largest reputational impact because of failures by third parties.¹

Only a technology-enabled, enterprise-wide program can secure the areas of vulnerability and unite stakeholders across procurement, business, risk oversight and legal to understand where and how third parties are being used and whether that is acceptable. These groups must come together in an organized manner to drive a risk-based selection and management of third parties. Third party risk is a strategic priority whose success rests on four pillars: governance, process, infrastructure, and data. Our framework is laid out below:

¹Third Party Risk Management Outlook 2020

KPMG’s deep experience supporting the design, implementation and execution of TPRM programs across industries and regions enables us to provide holistic solutions to your TPRM needs.

Element	KPMG team
Assessment and design of the holistic program	— Target Operating Model Design — Internal Audit review²
Building block components	— Procurement Function Integration — Supply Chain Integration — Risk Components including: Cyber Risk Regulatory Compliance Risk Technology Risk Tax Corporate Intelligence — Contract Compliance
Technology enablement	— GRC Implementation — Alliances with TPRM technology providers
Helping execute the program	— Powered TPRM — On Demand Services