Marshall Toburen

Third Party Risk Is Serious Business Choosing A Solution to Help Manage It Just Got Easier!

Blog Post created by Marshall Toburen Employee on Dec 4, 2014

In Deloitte’s 2014 Global Outsourcing and Insourcing Survey, IT outsourcing was found to be commonplace with nearly 60% penetration across survey respondents, with outsourcing growth expected to continue at rates of 12%-26% across functions.  Deloitte reported that “Vendor management is recognized as a critical factor for successful outsourcing”, yet 74% of respondents said their organizations do not currently have adequate tools and processes to manage their vendor portfolios while 62% believe their vendor management organizations are inadequately staffed.

 

These statistics are shocking and are no doubt at the root of why we continue to hear so many horror stories about third-party relationships gone bad – and there have been plenty of notable examples over the years:

 

  • Classified national security practices leaked by a contract employee supplied by a major subcontractor
  • A structural failure in a hotel killed 114 people as a result of the gross negligence of the hotel’s engineering subcontractor
  • A shoe manufacturer was exposed to child labor violations associated with a foreign vendor’s manufacturing operation
  • $6B in claimed damages incurred to credit card issuing banks as a result of 134 million credit cards being compromised through a major payment processor
  • An energy company experienced an oil platform blowout that resulted in an 87 day oil spill, 11 deaths, and $47B in fines, litigation, and settlements.  Two subcontractors were faulted in the event
  • The host country of a major international sporting event experienced security issues arising from outsourced security services
  • A food chain was accused of animal rights abuse as a result of the practices of one of their key suppliers
  • Thousands of companies experienced business outages as a result of the outage of a major cloud-based IT hosting provider
  • A State retirement system class action claimed $351B in damages from fraud of a mortgage-backed securities originator
  • A clothing retailer lost $45M in revenue from a product recall and supply interruption due to poor quality fabric from a manufacturing partner
  • A food chain’s revenue and stock price declined due to reputation risk arising from allegations the food chain was using expired meat from a supplier who was fraudulently representing it as fresh
  • A home improvement retailer had over 50 million customer credit card and email addresses exposed due to an information breach originating from the compromise of a vendor’s sign-on credentials

What if you could better manage the risk of these kinds of nasty surprises cropping up in your third party relationships?  What if you could more effectively prioritize resources to manage third parties, recapturing time and resources to devote to more important things?  This is what RSA Archer’s Third Party Risk and Performance Management solution is all about. 

RSA Archer’s Third Party Risk and Performance Management solution was developed based on best practice, giving careful attention to addressing regulatory obligations imposed on many organizations to better manage third party relationships. This solution helps organizations understand and manage the risk and performance of their third party relationships across the entire lifecycle of the third party, taking into account multifaceted risk scenarios, including those that might arise further down the supply chain.  Attention to these details has resulted in important recognition! 

Extending on last year’s exciting Enterprise GRC Magic Quadrant momentum, RSA Archer has been positioned as a Leader in the first-ever Gartner Magic Quadrant for IT Vendor Risk Management. RSA Archer’s Third Party Risk and Performance Management Solution was only one of two vendors ranked in the Leaders quadrant, and the vendor ranked highest in “Ability to Execute”.

 

101602

Visit the RSA Archer Community to learn more about the RSA Archer Third Party Risk and Performance Management solution and how we can help organizations like yours to better manage third party relationships.

Outcomes