Case Study
Capital Markets Third Party Risk Management Function Stand-up
Risk
Client
Fortune 50 Financial Services Institution
Services
ERM & Operational Risk
Project Overview
The Client’s Capital Markets division encountered significant third-party risk exposure due to an increasing number of relationships with counterparty suppliers and vendors. The Client lacked a comprehensive third-party risk management function to support key activities across the third-party lifecycle phases, and stakeholder support was only provided through decentralized, ad hoc activities. Additionally, to reduce third-party risk exposure, remediate outstanding findings, and ensure compliance with new enterprise standards, the Client required efficient and effective measurement and monitoring of third-party risk factors, aligned with industry standards and best practices. Client sought expertise and support from Reference Point (RP) to establish and implement a comprehensive third-party risk management function and strategy to mitigate key risks to the business and technology, by ensuring supplier alignment to existing third-party risk policies and standards. Reference Point facilitated the development of a new divisional third-party process and procedure and an implementation roadmap to achieve division-wide adoption.
Solution
Reference Point deployed a team of risk experts and consultants, including the former Third-Party Risk Inter-affiliate Lead at Citigroup, to facilitate the development and adoption of a comprehensive third-party risk management function and strategy.
The team collaborated with key stakeholders across the division, technology, enterprise supply chain, and enterprise risk management to assess the Client’s current divisional third-party risk management policies and capabilities against both the enterprise risk standards as well as industry best practices.
Reference Point also supported ongoing audit remediation activities and performed regular initiative status reporting and vendor contract inventory maintenance to meet short-term tactical needs.
Impact
Reference Point delivered a new divisional third-party process and procedure document, aligned to existing enterprise standards as well as a gap analysis and implementation roadmap to achieve division-wide adoption.
Additionally, Reference Point trained and educated key divisional stakeholders on the risk assessment process and ongoing monitoring activities to increase organizational understanding and accountability.
Based on Reference Point’s recommendations, the Client was able to establish a divisional third-party risk management strategy and function, providing the necessary infrastructure to accurately quantify and analyze third-party risk exposure.
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