12.8 Controlling third party risks Flashcards
1
Q
What is third party risk?
A
Risk that exists as a result of third party service contracts.
2
Q
What are the three jey third party risks?
A
1 Failure to provide quality of service
2 Disruptions to continuity of service
3 Failure of service provided (e.g. bankruptcy)
3
Q
List three common rools for controlling third party risks.
A
Contract management Dual supply arrangements Due dilligence Escrow agreement Relationship management Service level agreements
