Leveraging Technology for Continuous Vendor Risk Monitoring
In our previous blog, ‘DORA, Vendor Risk Monitoring, and Adverse Media’, we discussed that financial institutions are tasked with establishing robust controls for third-party risk management under DORA. Moreover, we discussed that while contractual agreements play a significant role, effective TPRM extends beyond contractual obligations with strategic ICT vendors.
Therefore, to truly understand and mitigate the risks associated with third-party vendors, financial institutions ideally delve beyond written agreements and evaluate their ICT suppliers’ ongoing ability and willingness to fulfill contractual obligations. A well-structured third-party risk management program requires continuous monitoring and proactive processes to manage and mitigate risks on an ongoing basis effectively.
In this blog, we dive deeper into leveraging technology for continuous vendor risk monitoring and using adverse media signals as early indicators for ICT vendor risk.
Adverse Media Monitoring: a Crucial Element of Your Vendor Risk Strategy
In recent years, organizations have increasingly recognized the importance of monitoring external factors and signals that could impact a vendor’s stability and security posture. By identifying negative trends in vendor performance through these signals, organizations gain early warning signs to address risks promptly.
Adverse media monitoring, also known as negative news or media monitoring, has emerged as a popular method for monitoring these external signals. It systematically screens vendors for negative information from official and unofficial online sources. Financial entities must be vigilant about adverse media signals about their vendors, such as economic instability, cybersecurity incidents, or legal and regulatory issues.
By integrating robust adverse media monitoring practices into vendor risk management strategies, organizations can proactively identify potential risks and take timely measures to mitigate them. This ensures a more secure and resilient business environment for all stakeholders involved.
Harnessing the Power of Technology for Enhanced Adverse Media Monitoring and Continuous Vendor Risk Management
When it comes to adverse media monitoring, organizations have various options. They can allocate resources to conduct manual risk assessments and establish collaborative networks or industry forums where participants share insights on adverse media incidents involving vendors.
Monitoring many vendors can be daunting for humans, especially when swiftly screening extensive news sources worldwide, often in different languages. Nevertheless, technology provides a solution by automating the process and offering valuable insights that might be overlooked. This empowers companies to monitor a significantly broader vendor landscape, ensuring all vendors receive equal attention and scrutiny.
Leveraging AI and NLP technologies
Organizations can leverage advanced technologies like Natural Language Processing (NLP) and Artificial Intelligence (AI) to enhance the valuable work performed by analysts and third-party risk managers. These technologies enable efficient processing and analysis of vast data, providing synthesized information that facilitates decision-making and risk assessment. This collaborative partnership between humans and technology empowers companies to manage vendor risks more comprehensively and efficiently.
Enhancing Operational Resilience with Comprehensive Vendor Risk Management
Acknowledging that relying solely on adverse media screening might not offer complete reassurance is crucial. However, when combined with traditional vendor management checks, it provides a comprehensive perspective of the vendor landscape. This approach guarantees that any recent developments are captured and evaluated promptly, preventing them from appearing in financial statements or going unnoticed between periodic reviews.
Discover how Owlin can assist in effectively managing the operational risk of ICT Vendors
AI platform Owlin helps you stay ahead of potential risks. Leveraging advanced machine learning algorithms and natural language processing capabilities, Owlin swiftly identifies pertinent information in 16 languages, detecting early risk signals. This enables organizations to make well-informed decisions and proactively manage vendor risks associated with cyber-attacks and IT system failures – all critical aspects emphasized in DORA.
Owlin’s platform can be tailored to suit specific client requirements and is seamlessly integrated into existing workflow systems. Its flexibility and scalability provide a comprehensive solution for operational risk management.