cxo voice
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release
No Result
View All Result
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release
No Result
View All Result
Leaders Talk and Latest Tech News | CXO VOICE
No Result
View All Result
Home News

More Than 8 in 10 Organizations Discover Third Party Risks After Due Diligence Period

News Desk by News Desk
August 17, 2019
Third Party Risk

Organizations working with third party business service providers, 83% identified third-party risks after conducting due diligence and before recertification. Gartner conducted survey of more than 250 legal and compliance leaders, shows that the standard point-in-time approach to risk management is no longer effective in today’s landscape of fast-paced, rapidly changing business relationships.

With an increasing number of third parties performing new-in-kind and noncore services for organizations, material risks cannot always be identified prior to the start of a business relationship. Modern risk management must account for ongoing changes in third-party relationships and mitigate risks in an iterative way — that is, on a continual basis, rather than at specified intervals.

The Legacy Approach to Third-Party Risk Management

Due to the changing nature of third-party risk, it has become an increasingly important focus area among legal and compliance leaders in 2019. According to Gartner’s data, there are a number of factors that have contributed to this shift:

  • Eighty percent of legal and compliance leaders state that third parties provide new-in-kind technology services for organizations, including startups and business model innovators, rather than incumbent service providers.
  • Two-thirds of legal and compliance leaders find third parties are providing services outside of the company’s core business model.
  • Third parties now have greater access to organizational data.
  • There is increasing variability in the maturity of organizations’ third-party networks.
  • Third parties are working with an increasing number of their own third parties (fourth and fifth parties).

With a point-in-time risk management approach, compliance leaders attempt to identify potential third-party risks upfront with extensive due diligence before contracting and again at recertification. However, this approach is largely ineffective: Not only does it contribute to longer onboarding and waiting periods, it also fails to capture any risks that may arise due to ongoing changes throughout the relationship. Among survey respondents who identified risks post-due diligence, 31% of those risks had a material impact on the business.

An Iterative Approach Improves Risk-Management Outcomes

ADVERTISEMENT

Gartner data shows that an iterative approach to risk management allows legal and compliance leaders to improve risk and business outcomes in terms of speed to engage, and by remediating and identifying third-party risks before their impacts materialize.

Organizations that applied an iterative approach experienced almost four times the level of business partner satisfaction with the speed to engage, twice the ability to remediate risks prior to impact and 1.5 times greater ability to identify risks prior to impact.

Key Risk Management Transitions for Compliance Leaders

For organizations that wish to shift from a point-in-time to an iterative risk management approach, there are three key steps that legal and compliance leaders should take:

1.   Streamline due diligence requirements to focus on the most critical risks.

2.   Establish internal triggers to monitor for change.

3.   Create controls and incentives to monitor for change.

“Legal and compliance leaders have relied on a point-in-time approach to third-party risk management, which emphasizes exhaustive upfront due diligence and recertification for risk mitigation,” said Chris Audet, research director for Gartner’s Legal & Compliance practice. “Our research shows an iterative approach to third-party risk management is the new imperative for meeting business demands for speed and stakeholder demands for risk mitigation.”

Source: Gartner

News Desk

News Desk

by CXO VOICE team memebrs, [email protected]

Related Posts

salesforce
People

Salesforce Strengthens Leadership with Appointment of Tech Innovators Amy Chang and David Kirk to Board

July 10, 2025
Technology

Tata Power Inaugrates Green Energy Skill Centre in Delhi

July 10, 2025
Bharti Airtel and Ericsson
Technology

Bharti Airtel and Ericsson Unite for Fixed Wireless Access

July 9, 2025
HCLtech and Cypremos
Press Release

HCLTech Partners with Cypremos to accelerate autonomous and smart vehicles ecosystem

July 9, 2025
Apple Sabih Khan
People

Apple Announces Sabih Khan as New COO, Succeeding Jeff Williams in Planned Leadership Transition

July 9, 2025
ASUS 30 Years
Technology

ASUS Celebrates 30 Years of Innovation with Giveaway and Virtual Amusement Park Experience

July 9, 2025
Synechron
Business

Synechron Opens New Office in Belfast to Support Client Growth and Innovation

July 8, 2025
Capgemini WNS
Business

Capgemini Acquires WNS for $3.3 Billion, Targeting Leadership in AI-Powered Intelligent Operations

July 7, 2025
Load More
ADVERTISEMENT

Latest Updates

salesforce

Salesforce Strengthens Leadership with Appointment of Tech Innovators Amy Chang and David Kirk to Board

by Deepa Sharma
25 minutes ago

Tata Power Inaugrates Green Energy Skill Centre in Delhi

by News Desk
47 minutes ago

Bharti Airtel and Ericsson

Bharti Airtel and Ericsson Unite for Fixed Wireless Access

by News Desk
18 hours ago

HCLtech and Cypremos

HCLTech Partners with Cypremos to accelerate autonomous and smart vehicles ecosystem

by News Desk
18 hours ago

Apple Sabih Khan

Apple Announces Sabih Khan as New COO, Succeeding Jeff Williams in Planned Leadership Transition

by Deepa Sharma
18 hours ago

ASUS 30 Years

ASUS Celebrates 30 Years of Innovation with Giveaway and Virtual Amusement Park Experience

by News Desk
1 day ago

Expert Views

Opinion

When AI Empowers Both Networks and Hackers: The New Battlefield for India’s Telecoms

May 20, 2025
Molly Sands AI
AI

AI RIP: 5 Things Knowledge Workers Will Say ‘Sayonara’ to in the Next Decade

March 8, 2025
multi cloud
Cloud

Multi-Cloud Made Simple: Strategies for Smart Business Management

March 5, 2025
Soft Skills
Opinion

Soft Skills and Technical Know-How: A Winning Combination in the Tech Industry

March 4, 2025
Digital Freedom
Cyber Security

Your Data, Their Gold: The Silent Battle for Digital Freedom

February 25, 2025

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Interviews

Steve Wilson, GenAI Cybersecurity LLMs
Cyber Security

How effective is GenAI in cybersecurity? The role of LLMs and AI in security solutions. [Interview with Steve Wilson]

-
Interview on Counterfeit products with Nikhil Narayan
Leaders Talk

Advancements in ML & AI made it possible to detect counterfeit products in real-time, says Nikhil Narayan

-
Newgenone bridges the gap between business users and IT teams with its low code capability: Varun Goswami
Leaders Talk

Newgenone bridges the gap between business users and IT teams with its low code capability: Varun Goswami

-
AI chatbots, Prasanna-Kumar
Leaders Talk

Can AI chatbots enhance customer experience and reduce the cost of serving customers?

-

Entrepreneur

Samsung Electronics appoints its first female president

Inspiring Women Entrepreneurs in India (2022)

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

CXOVoice.com is a leading online publication for CXOs, entrepreneurs, senior leaders, developers, and industry professionals. Our coverage spans key sectors, including IT, technology, banking, finance, cybersecurity, engineering, and automobiles.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

[email protected]
  • Home
  • About Us
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

Copyright © 2025 CXOVoice - All Right Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

No Result
View All Result
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release

Copyright © 2025 CXOVoice - All Right Reserved