AI Revolutionizes Third-Party Risk Management: Enhancing Resilience and Compliance

Article

As AI transforms third-party risk management, it moves organizations from manual and reactive approaches to predictive, real-time solutions. By leveraging AI tools, businesses can significantly enhance risk assessments, cybersecurity, and vendor management while maintaining operational resilience. However, balancing AI with human oversight is key to mitigating potential risks such as data privacy and ethical concerns.

Sep 09, 2024

Charles Forde, Chief Operating Officer, NFPE Investment Banking and Global Markets, Nomura

AI Revolutionizes Third-Party Risk Management: Enhancing Resilience and Compliance

AI has transformed third-party risk management, enabling real-time, data-driven risk assessments across multiple domains, reducing reliance on outdated manual processes.
The use of AI tools enhances cybersecurity by identifying anomalies in system behavior, allowing proactive responses to potential cyber threats before they escalate.
AI facilitates improved vendor management, offering better visibility into contractual obligations and potential risks while helping prevent service-level agreement breaches.
Ethical concerns surrounding AI in third-party risk management, such as data privacy and bias, are addressed by implementing comprehensive governance frameworks and human oversight.