Skip to main content

Third-Party Risk Management

The challenge of third-party risk management

As businesses become increasingly interconnected and reliant on third-parties, managing the risks arising from these relationships is becoming more critical and complex.

Request a proposal
Schedule a consultation

Visibility, control and compliance across your third-party ecosystem

As businesses become increasingly interconnected and reliant on a broad ecosystem of third parties, suppliers, service providers, and outsourcing arrangements, managing the risks arising from these relationships is becoming more critical and complex than ever before. How informed are you about how your third-parties operate? How could weak controls within your third-party network impact your business? How does the financial health or cyber hygiene of your third-party relationships effect your decisions about those relationships?

To be recognised as a responsible business, it is essential to have strong governance and oversight on your extended enterprise. This includes visibility and influence over supply chain continuity, regulatory compliance, cybersecurity, data privacy and other material third party risks.

Deloitte's Third-Party Risk Management (TPRM) managed service solution can help your firm identify, assess and manage risks posed by the interconnected network of third-party relationships. The solution enables greater control of risks and opportunities, and improves visibility and oversight over your third parties in risk areas such as resiliency, ESG (environment, social and governance) practices, financial crime and more.

Our solutions

Provision of a qualified Third-Party Risk Manager who fulfils regulatory requirements and establishes a comprehensive third-party risk management framework. This service addresses the specific risks associated with outsourcing and other third-party relationships.

Service approach

We provide you with a dedicated Third-Party Risk Manager (hours per week to be defined and based on institution size) with virtual or onsite presence options. The Third-Party Risk Manager maintains a direct reporting line to your Board of Directors with regular engagement with senior management.

Key benefits
  • Access to specialised expertise.
  • Reduced key person dependency risk.
  • Enhanced oversight with proactive monitoring of emerging risks and regulatory changes.
  • Scalable capacity.
  • Cost efficiency.
  • Regulatory compliance.

A dedicated team or individual providing specialised technical and regulatory expertise to support the Chief Risk Officer where internal capabilities are limited in third-party risk management. This model can be utilised to augment the team’s capacity, addressing specific talent shortages or specialised technical competency requirements.

Service approach

We work alongside your team, augmenting your capabilities with specialised skills, resources, and technology to enhance your third-party risk management function.

  • Screening and background checks to understand the risks associated with companies, key individuals and ultimate beneficial owners.
  • Third-party questionnaires and risk assessments.
  • Remote and onsite inspections.
  • Ongoing third-party risk monitoring.
  • Tracking of remediation activities resulting from risk assessments and inspections.
Key benefits
  • Balance in-house and external resources.
  • Flexible scaling based on needs.
  • Knowledge transfer to internal team.
  • Access to specialised expertise.
  • Cost-effective solution.

A dedicated team or individual providing strategic guidance to the Chief Risk Officer in third-party risk management areas where internal knowledge and skills are limited. This model is typically for support with specialised technical competency requirements.

Service approach

We provide you with a dedicated individual team, depending on the level of expertise required with virtual or on-site presence options.

Key benefits
  • Reduced administrative overhead of onboarding an FTE.
  • Professional support in specific risk matters.
  • Improved risk management knowledge.
  • Alignment with regulatory expectations.
  • Reduced key person risks.

Recommendations

Beyond compliance: ISO as your security and business catalyst

Transform your Information Security Officer from compliance enforcer to strategic business partner. Discover how ISOs drive resilience, mitigate cyber risk, and create competitive advantage in the DORA era.

Third-party risk management essentials: Navigating regulatory expectations on outsourcing

Financial institutions face unprecedented third-party risks in today's interconnected ecosystem. This comprehensive guide explores essential third-party risk management frameworks and key regulatory expectations for outsourcing arrangements in accordance with the MFSA FIR/03 and the EBA Guidelines on Outsourcing. Read the article...

Outsourcing risk management in an increasingly complex fintech landscape

Across the financial services industry, organisations are increasing their reliance on outsourcing arrangements. For instance, data shared by the European Central Bank recently demonstrated that the share of administrative expenses spent by banks on all outsourcing services had increased from 6.8% to 7.2% in 2023. Outsourcing of ICT services, especially cloud services, continued to grow. Learn more...
Perspective
10 minute read
Blog

Risk Navigator

Navigate complex regulatory and operational risks confidently with Deloitte Malta’s Risk Navigator. Outsourced risk management and information security solutions tailored for payment institutions and crypto-asset providers.
Service

Risk Navigator

Navigate complex risks with confidence using Deloitte's comprehensive risk management services. Our innovative solutions help you protect your business while driving strategic growth.

Discover more

Contacts

Ian Coppini

Ian Coppini

Strategy, Risk & Transactions Advisory leader
+356 2343 2000
David Herrera

David Herrera

Director | Strategy, Risk & Transactions Advisory
+356 2343 2332
Rafael Moreira

Rafael Moreira

Senior Manager | Strategy, Risk & Transactions Advisory
+356 2343 2000