Banks grapple with concentration risk from fourth parties
Risk Live: Third-party vendors are increasingly reliant on the same subcontractors
The complex web of interrelationships between vendors, suppliers and subcontractors to the banking industry is giving rise to hidden concentration risks that are difficult to measure and evaluate, risk managers say.
“How do you really go deeper in your supply chain to truly understand the full concentration of risk, and really be sure that there is not a subcontracting arrangement that was unintentional?” asked Alex Golbin, managing director of operations and technology transformation at Citi
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