Report Says Companies Plan to Change Third-Party Vendors that Pose Highest Risks
Global consulting firm Protiviti and the Shared Assessments Program’s annual Vendor Risk Management Benchmark Study finds that a majority (53 percent) of organizations surveyed are likely to exit or change (de-risk) relationships with some vendors due to heightened risk levels. The reason cited most often was fourth-party risk issues and an inability to resolve them.
Insurance companies, including healthcare payers, appear much more likely to make de-risking moves, with cost concerns and a lack of internal expertise to evaluate vendor controls cited as other primary reasons. The study finds that 71 percent of these organizations will likely change their high-risk relationships over the next 12 months. Nearly half of all respondents (48 percent) said it has become imperative from a risk and regulatory standpoint to assess vendors’ contractors.