The strategy detailed in the JSON format focuses on enhancing third party risk management within a bank's risk management department. The first phase involves assessing current practices, identifying weaknesses, and benchmarking against industry standards. This could include conducting an internal audit and analyzing past third-party incidents, much like evaluating the previous performance of a sports team to devise better strategies.
The next phase is to implement an improved evaluation process, introducing standardized checklists and automated monitoring tools. Similar to upgrading software, this aims to make the risk assessment more robust and efficient. Team members receive training on these new processes, ensuring everyone knows the updated procedures.
Finally, the strategy emphasizes communication and training. Workshops and training sessions are set up to educate staff and stakeholders about the new framework, akin to teaching new defensive plays to a football team. This ensures that everyone is well-informed and can adapt to the revised framework effectively, maintaining a strong defense against potential risks.
The strategies
⛳️ Strategy 1: Assess current third party risk management practices
- Conduct an internal audit of existing third party risk management practices
- Identify gaps and weaknesses in current procedures
- Gather data on past third party incidents and their impacts
- Analyse market trends in third party risk management
- Consult with team members for insights and suggestions
- Research best practices in the industry
- Review contractual agreements with third parties
- Evaluate the effectiveness of current risk assessment tools
- Benchmark against competitors and industry peers
- Compile findings into a structured report
⛳️ Strategy 2: Implement an enhanced third party risk evaluation process
- Develop a standardised risk assessment checklist for third parties
- Implement a tiered evaluation system based on risk levels
- Introduce automated tools for continuous monitoring
- Set up a risk scoring model to quantify potential risks
- Train team members on the new evaluation process
- Incorporate due diligence processes at the outset of third party engagements
- Establish regular review cycles for high-risk third parties
- Develop contingency plans for critical third party failures
- Create a feedback loop for ongoing process improvement
- Document the enhanced process and share with stakeholders
⛳️ Strategy 3: Communicate and train on the revised risk management framework
- Schedule a workshop for key stakeholders to introduce the strategy
- Create training materials and resources on third party risk management
- Develop a communication plan for ongoing updates
- Identify champions within different departments to support the initiative
- Schedule regular training sessions for new and existing staff
- Use real-life case studies to highlight potential risks and consequences
- Solicit feedback from participants to refine training content
- Engage with third parties to align their understanding of risk expectations
- Establish performance metrics to measure training effectiveness
- Regularly update training content to reflect changes in risk landscape
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
