The Evolving Frontier of Proactive Risk Management

Article

The rise of AI and IoT has transformed third-party risk management, creating opportunities and challenges for financial institutions. Proactive strategies, continuous monitoring, and innovative technologies are now essential to mitigate emerging risks and strengthen resilience in an evolving landscape.

Feb 04, 2025

Ellie Dowsett, Content & Media Marketing Manager, Center for Financial Professionals

Tags: Vendor and Third Party Risk AI and Technology (including Fintech)

The Evolving Frontier of Proactive Risk Management

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

Continuous monitoring tools are crucial for identifying potential risks in third-party relationships but require collaboration and regular review.
Embedding service level agreements in contracts from the start and reviewing them frequently ensures compliance and accountability.
Effective third-party risk management demands proactive engagement, with service managers presenting risks and progress in regular meetings.
Artificial intelligence is reshaping risk management by interpreting trends in financial evaluations and compliance issues but requires further maturity.