Third-party Risk Management: Building a Robust Approach

From Deloitte CFO Journal -

“The use of third parties is nothing new; companies have worked with suppliers, outsourcers, licensees, agents and the like for years. What has changed, however, is the frequency and scale of third-party use and the regulatory focus on how organizations are managing third parties to address the inherent risks.

Kristian Park, partner and leader of the Contract Risk and Compliance practice of Deloitte LLP in the United Kingdom, discusses the escalation in third-party risk and the ways organizations should be mitigating it, but often aren’t.”

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Integrating IT risk management with the business

From Continuity Central –

“Businesses are now so reliant on technology that many simply couldn’t operate without it. IT has become such an integral part of business that IT risk management is an imperative for all organizations. Gone are the days when risk management was only practiced by a specialist department, now risk management touches every part of the business, especially IT.

Technology is ubiquitous, no business of any size can operate without it. Risk management is also becoming more mainstream as organizations realise that risk needs to be an enterprise-wide concern. Indeed, due out later this year, ISO9001:2015, introduces a new approach to the international quality standard which is soon to be underpinned by ‘risk-based thinking’, bringing the concept of risk management to a much wider audience.

Risk management for the IT department isn’t simply limited to ‘keeping the lights on’, it is now underpinning the entire business. IT risk management is moving much higher up the corporate agenda as there are increasing instances where IT outages can result in loss of reputation, loss of business and in some cases, significant financial penalties from regulators.”

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‘10 Years After Hurricane Katrina: Lessons in Preparedness, Response, and Resilience’

This August marks the tenth anniversary of Hurricane Katrina, the costliest storm ever to make landfall in the United States; and a new report published by Marsh looks at the lessons that can be learned from the event.

In ‘10 Years After Hurricane Katrina: Lessons in Preparedness, Response, and Resilience’, executives from Marsh reflect on how property insurance, claims, analytics, risk engineering, and crisis management have changed since Katrina; and explain what we've learned from Katrina and other disasters about protecting people, property, and profits.

The key takeaways from the report include:

• The importance of reading and understanding your insurance policies cannot be underestimated.
• The benefits of ‘drilling’ your insurance policy to understand how it will respond to potential disasters.
• Why providing high-quality data for catastrophe (CAT) models is essential.
• How a robust business continuity and crisis management plan protects people and profits.

The report concludes that businesses can mitigate their risks and increase their resilience by focusing on four areas:

1. Protect your property,
2. Protect your profits,
3. Protect your people,
4. Protect your future.

Read/Download the Report>>