Third-Party Risk Management for Financial Services

The Call for Greater Operational Maturity

In a changing operational landscape, third-party service providers continue to be an important link for financial institutions in the successful delivery of their services to end customers and enterprise users.

An Aite-Novarica Group Impact Report, commissioned by Mastercard, interviewed 34 risk professionals in North America and Europe across five countries (the U.S., Canada, the U.K., Germany, and Spain) to gain insights on strategies to effectively manage third-party risk in financial services.

Key Findings:

• 73% of financial services firms leverage self-built risk tools that provide high value but produce significant resource impacts and quality issues.
• 90% of financial services third-party risk programs govern their most business-critical third-party vendors.
• Increased operational maturity is the primary need for financial services third-party risk leaders.
• Cybersecurity, operational resiliency, and regulatory risks are the highest priority third-party risk dimensions for financial services.