SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate John M. Lehr discusses how third-party risk management teams must enter into a safe third-party relationship and how to build and maintain trust, as well as how to adapt as the consumer wants and needs evolve rapidly.
The world of Third-Party Risk Management is one of frequent change. As consumer needs evolve rapidly and our lives speed up the market for the "next new," we are faced with changing our business and operating models. With each wind of change, our sails just as well – at least in theory. In the face of changing winds, organizations must work harder and faster to keep up.
But we must ask ourselves, is slowing down the new speed up? In her blog titled, "RegTech and the Role of Third-Party Risk Management," a well-respected leader in the Third-Party Risk Management industry, Linda Tuck Chapman, states, "Since the 2008 financial crisis, the U.S. has arguably become the most complex and costly jurisdiction for regulatory compliance." She goes on to state that "The financial services sector leads the pack in terms of the amount of regulation it is subject to, including the compliance challenges, regulations, and laws in near and far-flung jurisdictions, as well as the cost and complexity of compliance, risk management, and governance practices."
John M. Lehr, Lead Business Risk and Controls, USAA