New York - A consortium of financial institutions, including American Express, Bank of America, JPMorgan Chase and Wells Fargo, have announced the formation of TruSight, a company designed to combine best practices and simplify the process of conducting third-party risk assessments of suppliers and partners across the financial services industry.
Abel Clark, CEO of TruSight said: "TruSight's unique approach brings together industry participants and harnesses their collective expertise, allowing us to ensure the same high standards are met across the board. This inclusive, cross-industry effort will also simplify and streamline the third-party risk assessment process for financial institutions and their suppliers, delivering real benefits for all."
The complexity of risk events and regulatory focus have underscored the importance of ensuring that third-party suppliers and partners that interact with financial institutions are adequately prepared to manage and mitigate risk. Currently the industry lacks a simple and comprehensive approach to gather and validate third-party risk assessment information. This causes financial institutions and third parties of all sizes to spend valuable resources requesting, providing and validating assessment information in an inefficient and duplicative manner.
TruSight addresses these challenges by gathering information critical to thoroughly evaluate a service providers' risk profile, including information security, technology, hiring practices and governance among others. TruSight then verifies the information through remote or on-site validation to ensure the processes and practices are operating as described. This information is stored on a secure, shared platform available to financial institutions of all sizes, including investment banks, wealth management firms, asset managers, credit card companies, insurers and community and regional banks. Each institution then uses the information to make its own vendor risk and engagement decisions.