Organizations are increasingly reliant on third-party suppliers to deliver business-critical products and services to their clients and customers. They are also finding that failures by third-parties can rapidly tarnish their reputations and have significant downstream operational and cost implications. As organizations address their concerns around these issues, it is evident that they need a clear strategy for the selection, approval and management of third-parties. As there are a myriad of stakeholders involved, from the business as well as the procurement and risk oversight functions, developing and implementing this strategy continues to be highly challenging.
As businesses adjust to new operating conditions, in the wake of the disruption caused by global events and economic uncertainty, many will reassess the risk profile of their third-parties and re-evaluate their own resilience. As businesses do so, the need for a robust and sustainable TPRM program will be more important that ever before.
We conducted a survey of 1,100 senior TPRM executives from major businesses across 14 countries and jurisdictions and six industries resulting in the following key findings:
How should a business transform its TPRM program, to ensure it is optimized across the four pillars of governance, process, infrastructure and data? In our view, there are four key steps that businesses should take: