The broad spectrum of financial services organizations, ranging from banks to broker-dealers, all rely on a complex network of third-party business partners to reduce operating costs and increase their focus on core business functions. While outsourcing non-core business functions makes good business sense, it also creates a high risk area for financial services organizations as evident by the number of recent data breaches that been tied to a third-party business partner. Various regulatory bodies have issued guidance for managing third-party risk including the FDIC’s Guidance for Managing Third-Party Risk and the OCC’s Bulletin 2013-29. The language in other regulatory guidance is pretty direct: a task can be outsourced, but not the responsibility.
Whether you are dealing with FDIC, OCC, FFIEC, SEC, CFPB, PCI, Federal Reserve, or other requirements you probably already know the need to scale and enhance your third-party and vendor risk programs, but may be struggling due to overly manual processes or outdated, clunky software that was not purpose built to manage this complex problem; and cannot offer the monitoring requirements that many of the new regulatory requirements dictate.
Data breaches targeting financial services organizations and their third parties have led to significant financial losses, regulatory requirements for better third-party oversight, and Board level visibility. In many cases, especially after a breach, vendors that pose major risks to the bank or institution often require Board approval, bringing significantly more scrutiny to the security program and third-party assessment process.
Since 2004, Prevalent has enabled financial services organization to mitigate the risks of a data breach, ensure compliance with ever-increasing privacy regulations, and lay the foundation for a robust third-party risk management program.
Prevalent Vendor Risk Manager (PVRM) allows financial organizations to better manage and monitor risks posed by third and fourth-party business partners and vendors. The solution automates the collection of third-party information in a secure and scalable way, helping better understand the risks of your data supply chain. In addition, PVRM 3.0 now integrates with Prevalent’s newest product, Prevalent Vendor Threat Monitor, enabling you to leverage dynamic, real-time vendor risk information collected from external sources; enabling better visibility and monitoring between your assessments.