A consortium of financial institutions have collaborated in a bid to simplify third-party risk assessments of suppliers and partners across the industry.
TruSight includes American Express, Bank of America, J.P. Morgan Chase and Wells Fargo, and intends to deliver a “comprehensive approach”, gathering information on service providers’ security, technology, hiring practice and governance.
The data, secured on a shared platform, will be verified by TruSight and made available to all financial institutions, allowing them to make their own vendor risk and engagement decisions.
TruSight will be headed up by Abel Clark, previously global managing director of Thomson Reuters’s financial business, who will be CEO.
Clark said: ”We are breaking new ground in the financial services industry by creating a consistent and efficient process for assessing third parties.
He added: “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.”
According to Ken Litton, chief procurement officer at J.P. Morgan Chase, it is the first time the industry has collaborated “to mitigate risk among their vendors”.
Litton added: “"Financial institutions of all sizes can benefit from the confidence and added credibility that comes from using industry standards to gather and validate third-party risk information."
