By Adam Turteltaub

Recently, Gartner released very intriguing research into third party risk. Chris Audet, Vice President and Chief of Research in the Gartner Assurance Practice tell us that they found business has it’s spending all wrong. Too much is invested in due diligence, and not enough time and effort is spent on monitoring.

There research found that the business unit knows the risks third parties pose and is seeing it firsthand. When relationship managers were surveyed, 84% had seen changes to the risk profile and 76% found a third party had provided materially inaccurate information.  In fact, 95% had seen something troubling in the past year.

So why aren’t they reporting this information to the compliance team and what would get them to share more? There were three main answers, Chris reports:

Creating more relationship ownership objectivity. Too many feel too strong a tie to the third party.

Confidence in identifying red flags.

Encouraging objectivity and providing reassurance that compliance won’t over-react.

He also advises making it easy for third party relationship owners to contact compliance and to work compliance into the workflow.

Listen in to learn more about the benefits of rebalancing the third party risk equation.

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