Survey Report: U.S. bank failures prompt reassessment of third-party risks

The recent banking crisis—in which three mid-sized U.S. banks failed—prompted just under half of compliance professionals across all industries to reassess their third-party risk management (TPRM) procedures, according to a recent survey conducted by Compliance Week and integrated risk management software provider Riskonnect.

The survey, which compiled 118 responses between April and May, found 45 percent of respondents changed or considered changing their procedures regarding third parties following the banking industry turmoil that began with the collapse of Silicon Valley Bank on March 10. Signature Bank and First Republic Bank would later also fail in the United States.

This report will cover:

• How survey respondents reacted to the banking crisis from a TPRM perspective
• The largest TPRM concerns the crisis raised
• How respondents addressed red flags raised by the turmoil