Risk Management Show Avoid These 3rd Party Risk Pitfalls with Loren Johnson
Sep 9, 2024
Loren Johnson, a risk evangelist at Aravo specializing in third-party risk management, shares his expertise on navigating the complexities of vendor risks. He emphasizes the necessity of robust monitoring and resilient strategies in an evolving regulatory landscape. Loren discusses the impact of recent global events on risk management practices, the role of cybersecurity, and the significance of ethical outsourcing. He highlights challenges within the industry and the integration of AI for enhanced risk oversight, urging businesses to adopt comprehensive solutions for effective management.
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Third-Party Risk Examples
- CrowdStrike's third-party failure caused companies to go offline.
- Sriracha faced shortages due to relying on a single chili farm.
Expanding Scope of Third-Party Risk
- Third-party risk has expanded beyond bribery and corruption.
- It now encompasses supply chain disruptions, cyber risks, and ESG factors.
Overcoming Third-Party Risk Management Failures
- Implement a robust third-party risk management program with clear ownership.
- Secure leadership buy-in and prioritize risks based on their potential impact.