Systemic third-party dependency
Risk management - risk identification - supply chain - financial services - systemic risk.
Systemic third-party dependency is dependency on services provided by a service provider where their disruption or failure has been identified by a relevant financial authority as having potential implications for financial stability.
(Source - Financial Stability Board (FSB).)
"If many firms rely on the same third party for material services, the failure or disruption of this ‘critical’ third party could have a systemic impact across the financial sector.
Moreover, firms’ dependency on a limited number of critical third parties for key services within the financial services sector has increased in recent years and continues to do so.
As of 2020, for example, over 65% of UK firms used the same four cloud providers for cloud infrastructure services."
Critical Third Parties to the Finance Sector, Policy Statement, June 2022, HM Treasury.
See also
- Cloud
- Cloud infrastructure
- Critical service
- Critical third parties (CTP)
- Financial authority
- Financial institution
- Financial Market Infrastructure
- Financial stability
- Financial Stability Board (FSB)
- HM Treasury (HMT)
- Infrastructure
- Material
- Outsourcing
- Risk
- Risk identification
- Risk management
- Service provider
- Systemic risk
- Third party
- Third-party risk
- Third-party risk management
- Third-party service provider
- Third-party service relationship
