Beyond the Checkbox (Ep. 5): Practical Challenges to Upgrading TPRM (And How to Overcome Them)
Episode Summary
In this episode of Beyond the Checkbox, host Matt Kelly welcomes Ashu Avasthi, Head of Customer Success at Certa. The podcast focuses on the challenges companies face when building effective third-party risk management (TPRM) systems.
Ashu discusses the practical issues companies encounter, such as the manual processes involved in collecting information and the inefficiencies faced by third parties during onboarding. He emphasizes the need for simplicity and integration in TPRM systems to streamline processes and enhance user experiences on both ends.
Ashu also highlights the importance of having a holistic view of third-party data and the role of orchestration in integrating various technologies. He stresses the need for an executive sponsor to oversee the TPRM program and outlines key metrics for assessing the program's success, such as onboarding times and approval rates.
Key Insights
Challenges in Building Effective Third-Party Risk Management Systems
Companies often face significant challenges when attempting to build effective third-party risk management (TPRM) systems. These challenges include highly manual processes for collecting information, often using spreadsheets, questionnaires, and Google forms, which are prone to errors and inefficiencies. The onboarding process for third parties can be cumbersome, leading to delays and frustration on both ends. Additionally, companies struggle with ensuring that the process is smooth and efficient for third parties, which is crucial for building strong business relationships. The need for a streamlined, user-friendly approach is essential for improving overall TPRM effectiveness.
The Importance of Simplicity and Integration
Simplicity and integration are critical components for a successful TPRM system. Companies typically have multiple systems, such as ERP, CRM, and other ancillary systems, each housing different data sets. Accessing and integrating these systems to provide a holistic view of third-party data is often a major pain point. Simplifying the process not only benefits the third parties but also the internal teams managing the data. A well-integrated system can reduce the time and effort required for onboarding and managing third-party relationships, making the overall process more efficient and less prone to errors.
Orchestration and Executive Ownership
Effective orchestration of various technologies and clear executive ownership are crucial for TPRM success. Companies often have best-in-class technologies addressing specific issues, but integrating these technologies to provide a unified view is challenging. Orchestration involves creating a seamless experience that consolidates data and processes from different systems. Executive ownership ensures that there is a dedicated leader responsible for the overall TPRM program. This leader, often a Chief Compliance Officer or Chief Legal Officer, aligns the program with the company's strategic goals and ensures that all aspects of TPRM are effectively managed.
Beyond the Checkbox (Ep. 5): Practical Challenges to Upgrading TPRM (And How to Overcome Them)
Episode Summary
In this episode of Beyond the Checkbox, host Matt Kelly welcomes Ashu Avasthi, Head of Customer Success at Certa. The podcast focuses on the challenges companies face when building effective third-party risk management (TPRM) systems.
Ashu discusses the practical issues companies encounter, such as the manual processes involved in collecting information and the inefficiencies faced by third parties during onboarding. He emphasizes the need for simplicity and integration in TPRM systems to streamline processes and enhance user experiences on both ends.
Ashu also highlights the importance of having a holistic view of third-party data and the role of orchestration in integrating various technologies. He stresses the need for an executive sponsor to oversee the TPRM program and outlines key metrics for assessing the program's success, such as onboarding times and approval rates.
Key Insights
Challenges in Building Effective Third-Party Risk Management Systems
Companies often face significant challenges when attempting to build effective third-party risk management (TPRM) systems. These challenges include highly manual processes for collecting information, often using spreadsheets, questionnaires, and Google forms, which are prone to errors and inefficiencies. The onboarding process for third parties can be cumbersome, leading to delays and frustration on both ends. Additionally, companies struggle with ensuring that the process is smooth and efficient for third parties, which is crucial for building strong business relationships. The need for a streamlined, user-friendly approach is essential for improving overall TPRM effectiveness.
The Importance of Simplicity and Integration
Simplicity and integration are critical components for a successful TPRM system. Companies typically have multiple systems, such as ERP, CRM, and other ancillary systems, each housing different data sets. Accessing and integrating these systems to provide a holistic view of third-party data is often a major pain point. Simplifying the process not only benefits the third parties but also the internal teams managing the data. A well-integrated system can reduce the time and effort required for onboarding and managing third-party relationships, making the overall process more efficient and less prone to errors.
Orchestration and Executive Ownership
Effective orchestration of various technologies and clear executive ownership are crucial for TPRM success. Companies often have best-in-class technologies addressing specific issues, but integrating these technologies to provide a unified view is challenging. Orchestration involves creating a seamless experience that consolidates data and processes from different systems. Executive ownership ensures that there is a dedicated leader responsible for the overall TPRM program. This leader, often a Chief Compliance Officer or Chief Legal Officer, aligns the program with the company's strategic goals and ensures that all aspects of TPRM are effectively managed.
