The Future of Procurement: Why is Technology Lagging Behind?WATCH WEBINAR
Increased regulatory scrutiny of the risks arising from the strategic supply base following the 2008-2009 financial crisis has driven the financial services industry to bolster its existing third-party risk management (TPRM) capabilities. Most of this TPRM effort has focused on demonstrating to regulators that the institution has successfully implemented tools for governance, risk and compliance (GRC). During the same period, the industry’s dependence on strategic suppliers has grown given the accelerated outsourcing of core business functions. This increased dependency has exposed the limitations of GRC technology to monitor supplier-related risks.
Organizations are realizing they need more granular oversight of suppliers’ performance, contractual compliance and invoicing accuracy. At the same time, international regulators such as OCC, FRB, EBA, ACRA, MAS and HKMA have intensified and underlined their guideline requirements to exercise sufficient oversight over outsourcing suppliers. This combination of internal dependencies and external regulatory pressure is driving all regulated BFSI entities to go beyond the confines of traditional GRC, CLM, CWP, VMO and P2P tools and take a fresh look at the operating risk dimensions of their strategic supply chain.
Back office (e.g. finance & accounting, HR, print services)
IT (e.g. service desk, hosting, end-user computing, application development and maintenance)
95% of the total third-party spend in the financial services industry goes to services
“The reason that contracts are becoming more important is the growing importance of services spending.”
“Procurement needs to take responsibility for performance across the lifecycle of contracts, not just up to signature.”
Sirion offers an AI-driven, integrated platform for financial services companies to manage contracts, performance, invoices, and relationships in third-party contracts.