Outsourcing Challenges and 3rd Party Risk | Finance Magnates

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This article is focused on capital markets participants’ operational resilience and increasing reliance on 3rd parties, the reasons and challenges of group-wide compliance programs to maintain sound risk management.Since the COVID-19 pandemic, and with an intensification of the trade war between China and the U.S.  the supply chains’ future is uncertain. Organisations from all industries across the globe are deeply affected, allocating additional resources to managing disruption, responding to the immediate challenges.The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets InnovationSome organisations are better prepared than others to respond to the heightened need to assess their supply chain, particularly their IT infrastructure to adequately support operations stability, network robustness, and data security. The geographies of the supply chain become of vital importance. 3rd party Risk exposure is increasing however Due Diligence is not keeping pace.Cost-effectiveness is even more relevant in today’s environment, meaning that already relaxed on-boarding and Ina MacKinnon, CEO & Founder Alba Compliancemonitoring practices of a complex, multi-tier supply chain due diligence is further compromised, inadvertently subjecting the business to a further financial and operational risk. In such an environment, suppliers tend to engage in fraudulent practices knowing that the risks of …

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