GartnerLegal survey shows 3rd party RiskManagement misses are hurting organizations. Read the press release here: ERM Gartner_inc
. “Moreover, a majority of organizations are also using third parties for new-in-kind-services and have become more reliant on them to conduct their operations. While increased use of third parties can improve business operations in many ways, it also introduces risks that are causing notable impacts on organizations.”“ERM involvement in third-party risk management activities has increased across the board since 2016,” said Matlock.
Third-party risks tend to be high volume, heterogeneous in nature, and vary greatly in importance across the business. It is hard, therefore, to identify and prioritize what matters most. ERM must first isolate and combine only those inputs that matter most at the enterprise level, enabling them to focus on aggregating the most important inputs and addressing the most critical enterprise third-party risks.
ERM’s role as a trend spotter is also undermined by the expanding third-party landscape because the potential issues are too numerous and available data is often point-in-time and lagged. Again, the solution is to narrow down the scope of what is being monitored, limiting focus to the most critical emerging issues and proactively tracking them with a set of easily monitored forward-looking indicators that enables ERM to reliably spot critical enterprise risk trends.
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