{"id":8796,"date":"2019-05-22T09:33:12","date_gmt":"2019-05-22T07:33:12","guid":{"rendered":"https:\/\/sourcing-force.com\/?p=8796"},"modified":"2026-04-13T15:16:03","modified_gmt":"2026-04-13T13:16:03","slug":"5-practices-that-might-put-financial-services-companies-at-risk","status":"publish","type":"post","link":"https:\/\/sourcing-force.com\/en\/5-practices-that-might-put-financial-services-companies-at-risk\/","title":{"rendered":"5 Practices That Might Put Financial Services Companies at Risk"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; fullwidth=&#8221;on&#8221; _builder_version=&#8221;4.16&#8243; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;rgba(0,0,0,0.5) 0%|rgba(0,0,0,0.5) 100%&#8221; background_color_gradient_overlays_image=&#8221;on&#8221; background_color_gradient_start=&#8221;rgba(0,0,0,0.5)&#8221; background_color_gradient_end=&#8221;rgba(0,0,0,0.5)&#8221; background_image=&#8221;https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/towfiqu-barbhuiya-napasgkzaxg-unsplash-min-scaled.jpg&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_fullwidth_post_title date_format=&#8221;d\/m\/Y&#8221; featured_image=&#8221;off&#8221; text_color=&#8221;light&#8221; _builder_version=&#8221;4.16&#8243; text_orientation=&#8221;center&#8221; custom_padding=&#8221;100px||100px|&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h2><img decoding=\"async\" class=\"aligncenter size-large wp-image-8803\" src=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM-1024x348.png\" alt=\"\" width=\"1024\" height=\"348\" srcset=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM-1024x348.png 1024w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM-300x102.png 300w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM-768x261.png 768w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM-1080x367.png 1080w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-12-at-3.55.06-AM.png 1818w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/h2>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>The financial services industry is going through a major reconstruction as it continues to climb out of the financial crisis. With increased regulatory pressure, particularly when working with\u00a0 international suppliers, those within the industry have grown accustomed to keeping alert and on their toes. However, there are several aspects of <a href=\"https:\/\/sourcing-force.com\/en\/risk-management\/\">risk management<\/a> that are often overlooked.<\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-size: 18pt;\"><strong>Here are five practices that could be putting financial services companies at risk:<\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-family: tahoma, arial, helvetica, sans-serif; color: #ff9900;\"><strong>1. Unclear Understanding of Data Security<\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">Increasingly, financial services companies are shifting their data to the cloud while also outsourcing processes that help cut costs. With this comes a greater risk for data breaches, particularly when dealing with customer data. <\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">According to ISG, \u201cThe regulators know that suppliers are the soft underbelly for cyber-security and privacy risks. The legal and operational control environment must ensure the supplier (and secondary suppliers) are applying the company\u2019s own level of data security protection, and are able to adjust to system threats and intrusions.\u201d<\/span><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-family: tahoma, arial, helvetica, sans-serif; color: #ff9900;\"><strong><b>2. Decentralized Data Management<\/b><\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">While it\u2019s important to have a diverse set of suppliers, all of the M&amp;A activity in the financial services industry can make data bigger and more complex. Implementing consistent, centralized processes that offer an enterprise-wide view of <a href=\"https:\/\/sourcing-force.com\/en\/spend-analytics\/\">spend activity<\/a> allows companies to ensure they are positioned for better performance.<\/span><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-family: tahoma, arial, helvetica, sans-serif; color: #ff9900;\"><strong><b>3. Reliance on Legacy Systems<\/b><\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>I<span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">nnovation is key for the financial services industry and this means upgrading out-of-date technology, which is naturally higher in cost and often more susceptible to complications.<\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">While many are choosing to outsource systems to third-party suppliers or partners, rather than building systems in-house, working with vendors comes with its own set of risks, such as transparency and compliance.<\/span><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-family: tahoma, arial, helvetica, sans-serif; color: #ff9900;\"><strong><b>4. Inconsistent Audits<\/b><\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">It\u2019s impossible to <a href=\"https:\/\/sourcing-force.com\/en\/risk-management\/\">manage risk<\/a> without knowing the status of a third-party supplier or sub-service organization, including insight on current financials, mergers\/acquisitions and press mentions. Unfortunately, this is a step often skipped. In fact, according to Ernst &amp; Young\u2019s, Financial Services Supplier <a href=\"https:\/\/sourcing-force.com\/en\/risk-management\/\">Risk Management<\/a> Survey, 27 percent of respondents said they have identified, but not yet addressed or monitored sub-service organizations.<\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\"> Further, only one-fifth said they review sub-service organizations the same way they review their suppliers.\u00a0<\/span><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3><span style=\"font-family: tahoma, arial, helvetica, sans-serif; color: #ff9900;\"><strong><b>5. Lack of Communication with Employees<\/b><\/strong><\/span><\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">Due to the breakneck pace that regulatory requirements are changing, it\u2019s critical that operational staff have a clear understanding of the policies put in place to manage suppliers and vendors\u2014and that they\u2019re actually being followed.<\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">Further, these standardized processes should have clear ownership and accountability to ensure efficiency.<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><span style=\"font-size: 14pt; font-family: tahoma, arial, helvetica, sans-serif;\">Those who stay on top of new technologies and changing regulations, while also addressing top-down pressures to reduce expenses and improve cost containment, will be able to achieve growth, as the financial services industry\u00a0 continues to evolve.<\/span><span style=\"font-size: 14px; color: #666666;\">\u00a0<\/span><\/p>\n<\/blockquote>\n<p><span style=\"color: #000000; font-family: tahoma, arial, helvetica, sans-serif; font-size: 15pt;\"><a href=\"https:\/\/sourcing-force.com\/en\/procure-to-pay-automation\/\"><strong>See how Sourcing Force helps businesses automate their procurement processes<\/strong><\/a><\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\"><a href=\"https:\/\/sourcing-force.com\/en\/procure-to-pay-automation\/\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-8003\" src=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite-1024x186.png\" alt=\"\" width=\"1024\" height=\"186\" srcset=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite-1024x186.png 1024w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite-300x55.png 300w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite-768x140.png 768w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite-1080x196.png 1080w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/e-procurement-suite.png 1210w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/span><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#f7f7f7&#8243; custom_padding=&#8221;5px|||||&#8221; saved_tabs=&#8221;all&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Our latest articles<\/h3>\n<p style=\"text-align: center;\">\n<h3 style=\"text-align: center;\"><\/h3>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;3&#8243; include_categories=&#8221;all&#8221; show_author=&#8221;off&#8221; show_date=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_pagination=&#8221;off&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; box_shadow_style=&#8221;preset1&#8243; global_colors_info=&#8221;{}&#8221;][\/et_pb_blog][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The financial services industry is going through a major reconstruction as it continues to climb out of the financial crisis. With increased regulatory pressure, particularly when working with\u00a0 international suppliers, those within the industry have grown accustomed to keeping alert and on their toes. However, there are several aspects of risk management that are often [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[36,46,37,41],"tags":[],"class_list":["post-8796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spend-analytics","category-source-to-pay","category-supplier-performance","category-supplier-relationship-management-srm"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Practices That Might Put Financial Services Companies at Risk - Sourcing Force<\/title>\n<meta name=\"description\" content=\"The financial services industry is going through a major reconstruction as it continues to climb out of the financial crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sourcing-force.com\/en\/5-practices-that-might-put-financial-services-companies-at-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Practices That Might Put Financial Services Companies at Risk - 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