What is Third Party Risk Management? If you have worked for a company, you may have noticed that your pay slip report is emailed to you from a vendor and not from your company itself. This is because, there are vendors present in the market that do the job of emailing efficiently. It also means that, your data is provided to them which allows them full access to your earnings. These vendors are third party vendors, and your company signs an agreement with the vendor to keep the data safe. Now, a single vendor can get requests from many companies and the vendor has to more or less fill the same agreement form again and again. Redudant work isn't it?
Similarly, Financial Institutions outsource a variety of services – examples include everything from human resource management systems to credit card processing to the creation of bank statements (both electronic and paper) to the evaluation of a consumer’s credit history. The outsourcing is very strategic. It presents cost-saving and efficiency driving opportunities, while allowing FIs to focus on their core competencies.
More details on the use case can be found here.
In order to leverage the due diligence reviews done on third parties that have been completed by other Financial institutions. we design a blockchain-based solution that would allow FIs to publish their third-party due diligence on a distributed ledger to be leveraged and added to by other FIs.