TPRM Challenge: Underestimation of Requirements to Execute Sound TPRM
This blog series discusses four key third-party risk management challenges for 2022. Last week we discussed the evolution to full scope continuous monitoring. This week: the underestimation of requirements to execute sound TPRM.
Authors: Stefan Peekel & Danny Haydon
Research shows that organizations and their TPRM leaders’ biggest concern is the limited number of resources available to handle the workload. To accommodate the enterprise-critical role, with its broadened scope, expanded complexity, and increased frequency, third-party risk managers need additional financial and human resources. Support for these investments from senior leadership along the whole TPRM transformation journey is a critical requirement.
However, 61% of respondents to a KPMG survey indicate that they believe TPRM is undervalued and on average 52% indicate that their organization does not have sufficient capabilities and resources to manage all the third-party risks they face.
Limited attention, focused on short term and business specific units, such as procurement, often leads to oversight and underfunding of the strategic synergies that could arise from a more coordinated approach. In addition, the current shortage of talent and widespread inflation has increased the price of strong tech-savvy resources that are required to lead and execute an enterprise wide TPRM transformation.
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This blog discussed the underestimation of requirements to execute sound TPRM. This is one of the four key challenges we discuss in our white paper ‘The Role of Technology & Data in Addressing 2022’s TPRM Challenges.’ Want to read about the other challenges and how technology adoption can be a cornerstone strategy to address them? Download our white paper!
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