A study by Forrester Research Inc. compared the user experience, which led to a positive ROI for the technology user around third-party risk management. I found the approach and methodology used persuasive and valuable for the compliance professional to consider evaluating such a process in your organization. Some of the key findings readily translate for the compliance practitioner. The first area was in risk assessments of third parties. If you provide a technological platform, you can enhance the speed and efficiency of your risk assessments on an ongoing basis. This decrease in time, both in terms of length and person-hours, will yield an immediate cost saving for your compliance function.
Various other factors could increase your ROI, as detailed in the Forrester report, which includes renewal assessments, ongoing monitoring, and increased business efficiencies for both your organization and the third parties, which would all work to increase ROI. Most critically, you would demonstrate the operationalization of your compliance program into the very fabric of your organization.
Three key takeaways:
1. Why is demonstrating ROI on your third-party risk management program important?
2. Determining ROI helps to demonstrate operationalizing your compliance program.
3. Determining third-party management program ROI can help to tear down compliance siloes.
