Understanding Third-Party Risk in Financial Services
This global bank wanted to improve their knowledge of its suppliers to help with its internal and external reporting requirements and ensure the stability of its suppliers, to meet regulatory guidelines. However, like many financial institutions, the data the bank held on its tens of thousands of suppliers around the world was housed in multiple systems, which was creating siloes, inconsistencies across markets, and data gaps.
Dun & Bradstreet was chosen to support the bank to increase the completeness, consistency and accuracy of its supplier data, as well as enriching it with key risk indicators, delivered via a mix of API and online platforms.
Improving completeness, consistency & accuracy of foundational supplier data
The bank‘s existing supplier data was first matched to the Dun & Bradstreet Data Cloud, which contains records on over 550 million businesses.
The supplier records were then appended with foundational data points across several markets to improve completeness and accuracy. A single unified view of third-parties ensures structure, accountability, coverage and quality.
This centralised data is now in a consistent format across the bank, understanding of third-parties is improved and reporting has been made easier.
Enhanced intelligence for deeper insights & improved risk mitigation
Dun & Bradstreet enriched the foundational data with additional insights, including:
Global corporate hierarchies for contract management, reporting and spend aggregation
Financial ratings to highlight financial stability
ESG rankings to expand the bank’s view on its supplier portfolio from a different risk perspective.
Cyber risk ratings to understand risk exposure
In addition to supporting the bank with reporting requirements and providing a deeper knowledge of supplier entities, these new insights have improved risk assessments and overall supplier management, as well as driving cost savings.
Benefitting from frequent updates & new online tools for supplier onboarding
The bank is able to receive updates to their data points via API integration. This allows for early warnings on critical suppliers facing financial distress or other risks.
In addition, the bank chose to implement one of Dun & Bradstreet‘s online platforms for onboarding and assessing the risk of new third-parties. Automated workflows save time and allow teams to focus on highest risk areas.
Outcomes: Single, unified view of third-parties, captured and shared consistently across markets
Data gaps filled and updates provide early warning signals of financial distress and other risks.
Additional datapoints support reporting requirements and regulatory compliance and provide deeper and alternative insights for risk assessment.
Improved supplier management and overall cost savings.
Centralised data in a consistent format has made reporting and meeting regulatory requirements easier.