Third-party risk management is worth doing well—not only to protect your institution’s reputation, resources, and customers, but also because third-party risk management is part of safety and soundness exams. The effectiveness of a third-party risk management program is seen as an indicator of overall management capabilities. The design of third-party risk programs varies across institutions.
There can be differences in:
Since the financial crisis of 2008, the financial services industry has been inundated with new rules and regulations that have consumed resources and increased spend on compliance. All of this is occurring at a time when the industry has also been under increasing competition from financial technology (fintech) firms. Whilst the fintech industry is booming by providing new innovative products at a rapid pace, traditional incumbents have appeared less agile at adopting these.
When the Internet arrived, we said, “The world is no longer flat! This changes everything!” Then we went back to building centralized systems – something we still do today. Examples of centralized systems are our ERPs, enterprise payment systems and government platforms. Recent commercial examples include Google, Facebook and Uber.
In this episode of the Sourcing Industry Landscape, Dawn Tiura interviews Rob Bernshteyn. Rob Bernshteyn is the Chief Executive Officer of Coupa Software, a cloud platform for business spend management. After moving to the U.S. at a young age, what began as an interest in sports memorabilia turned into a profitable venture during middle school and high school to help fund his college education.
Alignment to business needs during the Request for Proposal (RFP) phase of any sourcing event is critical, but perhaps more so when it comes to capital building projects given some of the changes procurement professionals face within their stakeholder community. In most companies, the plant facility's engineering teams are composed of lifelong veterans within the industry who have executed numerous projects – some successful and others, well, not so much. This inconsistency of results tends to make these individuals rather risk adverse and fixed in a traditional way of thinking.