Less Than 15 Percent of Financial Services Institutions Have a Mature Vendor Risk Management Program

CHICAGO (July 11, 2017) – A poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates less than 15 percent of financial services organizations have a well-established vendor risk management program within their institution.

“Outsourcing business operations or using third parties does not absolve an organization of their responsibility to ensure that data remains protected,” Russ Sommers, CPA, CISA, senior manager with Baker Tilly’s financial services risk practice, said. “The finalized New York Department of Financial Services’ (NY DFS) cybersecurity law requires companies to identify their third party service providers and validate they are at least meeting the minimum standard of their organization’s cybersecurity program.”

“Conducting ongoing monitoring for the duration of the third party relationship is essential for managing risk, especially for vendors that handle non-public information, or have direct access to computer systems.” Tom Wojcinski, CISA, CRISC, CCSK, CCSFP, partner with Baker Tilly’s consulting practice, said.

Baker Tilly recently held an educational webinar, “The finalized NY DFS cybersecurity regulations: The two year transition,” to assist financial services organizations in understanding the NY DFS cybersecurity regulation, specifically discussing the regulations that go into effect at the two year transition period.

The webinar presenters discussed:

  • The new cybersecurity regulations
  • The different transition periods
  • The two year transition period
  • Implementing a successful vendor risk management program

Presentation slides and a recording of the webinar are available at bakertilly.com/insights/the-finalized-ny-dfs-cybersecurity-regulations-the-two-year-transition.

About Baker Tilly Virchow Krause, LLP (bakertilly.com)

Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,700 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 countries, with 30,000 professionals. The combined worldwide revenue of independent member firms is $3.2 billion.