So what do Barclays, HSBC and Morgan Stanley have in common these days?
The three firms have partnered together to help design the latest third party risk management service available from Markit. Market announced the launch of its Know Your Third Party (KY3P) service hosted by Dell Cloud Services on Tuesday.
According to Markit, KY3P is the first centralized, cloud based data hub that simplifies and standardizes third party risk management processes focusing on vendor due diligence and ongoing monitoring.
Created in partnership with the aforementioned three brokers, as well as buyside firms and third parties, the patent-pending KY3P service will be positioned to drive industry standardization of risk management practices to facilitate effective operational risk management of third party products and services. It will help institutions and third parties keep pace with compliance and regulatory requirements.
Barclays, HSBC and Morgan Stanley will be working with Markit to onboard their third parties onto the data hub. Dell is an early adopter of the service and will be actively onboarding its own third parties.
So how does it work?
KY3P will allow third parties to increase speed to market, remove barriers to entry and be ready to transact more efficiently. The KY3P data hub will include standardized due diligence questionnaires, external audit capabilities and Significant Event Notification and Tracking (SENT), which allows firms to manage industrywide events, such as cyber security or business continuity incidents, quickly and effectively without duplicative efforts.
KY3P also provides due diligence information such as financial details, stability ratings and audit reports, enabling institutions to perform their own risk assessments on third parties more effectively.
The system is delivered as a Software as a Service using the Dell Cloud Dedicated Service platform, including managed infrastructure and applications services. KY3P is hosted within Dell’s data centers.
