The Clock’s Ticking - Monitoring Risk in Real Time

Article

The rapid rise of AI and IoT is transforming third-party risk management, bringing both unprecedented opportunities and increasingly complex threats. Financial institutions must prioritize continuous monitoring, proactive communication, and innovative tools to manage evolving risks and ensure resilience. This article examines the strategies that leading banks are adopting to stay ahead in a fast-changing environment.

Jan 27, 2025

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

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

The Clock’s Ticking - Monitoring Risk in Real Time

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 becoming essential in third-party risk management, but their effectiveness depends on accurate review processes.
Embedding clear service level agreements into contracts from the start ensures accountability and helps track compliance effectively.
Proactive communication between institutions and third parties is vital for addressing recurring issues and fostering collaborative risk management.
Understanding the role of AI in third-party services is critical, as it brings both opportunities for efficiency and challenges in risk interpretation.