OUTSOURCING
KPMG ’ s guidance is a call to action , urging businesses to adapt to the increasingly complex risk environment . With only 22 % of firms recognising ‘ operational resilience ’ as a TPRM driver , there ’ s a clear need to align these programmes with broader resilience strategies .
Moreover , pre-contract due diligence must go beyond surface-level checks . Businesses need to thoroughly evaluate providers ’ business models , finances , capabilities and resources . After all , 74 % of companies admit they struggle to assess fourth parties effectively . Now is the time to act before the risks escalate .
The KPMG report goes on to highlight contract management as an often-overlooked , yet crucial element , in TPRM .
Shockingly , only 57 % of organisations have enterprise-wide agreements that clearly define which services can or cannot be outsourced . This glaring gap highlights the urgent need to create strong frameworks – not just for external agreements , but also for intragroup arrangements . Internal agreements , though frequently overlooked , demand the same level of attention when it comes to governance and control . Without these solid frameworks , companies are leaving themselves exposed to risks that could have been mitigated with just a little more attention to detail .
130 January 2025