Critical risks about third party service providers are not being reported to the boards of financial services companies, according to EY.
While more than 60 per cent of financial services institutions report noncompliant third parties to senior management, less than half of firms escalate the problems to board level.
EY's Global Third Party Risk Management Survey has uncovered that "critical third party information" is only escalated to board level by 41 per cent of organisations – and only 26 per cent of companies report breaches and incidents to the board.
EY surveyed 54 global financial services organisations with third-party risk functions of "varied maturity and sizes" for the report.
Of the six global asset managers included in the EY survey, only one indicated that it reports critical third-party risks to the board – while three (50 per cent) asset managers report third-party breaches to the board level.
The global findings, which include two unnamed Australian institutions, come after revelations of poor corporate governance at AMP that led to the resignation of the CEO and chair on 20 April and 30 April, respectively.
Overall, the EY report concluded there have been "big gains in governance and oversight" when it comes to third-party risk management, but more needs to be done on board reporting and technology integration.
Perpetual Investment has recorded net outflows of $1.1 billion for the fourth quarter of 2019, while its funds under management fell by $300...
The RBA has revealed the factors behind the July cash rate decision and has left the door open to further changes in the near term. ...
HESTA has posted its investment returns to members for the 2018-19 financial year, which it said were above the target objective. ...