Know Your Third Party (KY3P®)
by Jack Large
KY3P®, from the IHS Markit group, is a centralized data hub which aims to simplify and standardize third-party risk management processes. It was developed in partnership with global banks, asset managers, and Big 4 consulting firms, is designed to help you simplify third-party risk management processes. By standardizing due diligence questionnaires and storing third-party information centrally, the service minimizes efforts around information requests and responses.
The platform is designed to help firms collect and maintain risk information, including cybersecurity & financial ratings, sanctions data, news alerts, cyber event data, and questionnaire responses from third parties that can be used to generate risk scores. Customized workflow capabilities allow firms to implement KY3P® into their existing processes in a seamless fashion.
Members and customers
KY3P’s initial design partners - Barclays, Goldman Sachs, HSBC, Morgan Stanley and UBS - have been joined by Ally Bank, BBVA Compass, Citizens Bank, Comerica Bank, Fifth Third Bank, The Huntington National Bank, KeyBank, M&T Bank, Regions Bank, Santander US, SunTrust Bank and US Bank.
Customers for KYC3P include:
- Third parties
- Asset managers
- Banks
- Broker-dealers
- Hedge funds
- Insurance firms
- Fund administrators
Product features and levels of service
The main product features of KYC3P include:
- Vendor discovery: Aggregate company information including financial profile, corporate hierarchies, products and services
- Audit and compliance: Store, organize and access third-party external audit reports
- Incident response: Receive notification and tracking of significant industry-wide events, such as security vulnerabilities, and a firm’s own customized bilateral event
- Due diligence: Use standardized questionnaires to facilitate efficient information gathering and risk assessment
- Data verification: On-site or remote verification of vendor questionnaire responses performed by KY3P global assurance and advisory partners
- Vendor Management Portal: Provides standardized onboarding, due diligence, inherent risk calculation, oversight and off-boarding of third-party provided products and services
- RapidRatings: View RapidRatings Financial Health Ratings from within KY3P; providing the most sophisticated analysis of the financial health of the public and private companies
KY3P offers three levels of service:
- Remote verification: due diligence information is independently validated through the KY3P platform
- On-site verification: the service coordinates on-site assessment of vendor information
- Custom verification: on-site assessment is conducted based on parameters specified by the user.
CTMfile take: KYC3P is a classical central, cloud-based platform for vendor on-boarding, collection and verification of due-diligence data and vendor-risk monitoring.
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