What Impact Does the Changing Trajectory of TPRM Have on the Financial Services Sector?

Article

Third-Party Risk Management is no longer just a compliance exercise. As financial institutions face increasing regulatory scrutiny and expanding risks, experts emphasize the need for continuous adaptation. From fourth-party exposure to ESG compliance and AI oversight, firms must evolve their strategies to remain resilient.

Feb 13, 2025

Anne McGowan, Head of Supplier Management, Governance & Risk, Lloyds Banking Group

Hilda AndelizGomez, VP. Enterprise Third Party Performance Analyst, Valley National Bank

Tags: Vendor and Third Party Risk

What Impact Does the Changing Trajectory of TPRM Have on the Financial Services Sector?

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Financial institutions must move beyond static assessments and adopt continuous monitoring to keep pace with evolving third-party risks.
Regulatory deadlines like DORA and SEC oversight are driving increased C-suite involvement and urgency in TPRM programs.
Identifying fourth-party and nth-party risks is crucial, as recent cyber incidents have revealed critical gaps in supplier oversight.
ESG considerations and AI governance are becoming integral to TPRM, requiring firms to proactively address ethical and compliance concerns.