Early Impressions

Elevating TPRM to a strategic risk and boardroom priority

Aligned with SAMA Vision 2030

2, July 2025

SAMA Vision 2030: Pioneering the Future of Saudi Arabia’s Financial Landscape

The Saudi Central Bank (SAMA) Vision 2030 is a strategic pillar aligned with the Kingdom’s broader Vision 2030, driving a digitally empowered, resilient, and globally competitive financial sector.

As Saudi Arabia transitions into a knowledge-based, innovation-driven economy, SAMA Vision 2030 is designed to:

01. Accelerate Digital Transformation

By fostering fintech innovation, modernizing infrastructure, and enabling smart regulatory technologies (RegTech), the vision unlocks the next frontier of financial services.

02. Enhance Risk Governance & Resilience 

Strengthen systemic resilience through robust risk governance frameworks for Third-Party Risk Management (TPRM). These initiatives equip financial institutions to navigate cybersecurity threats, regulatory shifts, and operational risks in an increasingly digital economy.

03. Empower Financial Institutions 

By promoting agility, compliance, and operational excellence, SAMA aims to position Saudi banks and financial entities as regional and global leaders.

04. Drive Financial Inclusion & Innovation

With a focus on open banking, secure digital payments, and AI-driven insights, the financial sector becomes more inclusive, accessible, and customer-centric.

 

Securing the Future of Banking: The Critical Role of TPRM

  • Strengthens Trust & Financial Stability- Banks depend on third-party providers for critical services. Effective TPRM ensures these partnerships are resilient and reliable, protecting the bank’s operations and preserving customer confidence in a rapidly evolving financial landscape.
  • Protects Data and Cybersecurity- Third parties often access sensitive financial data, making them potential weak points for cyber threats. Robust TPRM frameworks help prevent breaches and ensure compliance with SAMA’s cybersecurity mandates, safeguarding customer information and bank reputation.
  • Ensures Compliance with Regulatory Standards- SAMA requires banks to maintain strict oversight over third-party risks. TPRM helps banks meet these regulatory expectations, avoiding penalties and aligning with SAMA’s guidelines that promote a secure and well-governed financial sector.
  • Supports Digital Innovation Safely- With digital transformation accelerating, banks increasingly rely on fintech and cloud services. TPRM enables banks to adopt innovative technologies confidently while managing associated risks, in line with Vision 2030’s push for a modern, tech-driven financial ecosystem.
  • Strengthens Operational Resilience- TPRM helps banks identify concentration risks and dependencies on a few vendors, enabling proactive risk mitigation strategies. This approach ensures continuity of critical services even during disruptions, aligning with SAMA’s vision for a resilient financial infrastructure.

 

TPRM Roadblocks & How to Overcome Them Turning Challenges into Strategic Wins

Challenges 
  1. Limited Visibility into Vendor Ecosystem- Many organizations struggle to gain full transparency across all third parties, especially subcontractors, creating blind spots in risk exposure.
  2. Manual & Fragmented ProcessesRisk assessments and monitoring are often manual, inconsistent, and siloed leading to delays, inefficiencies, and compliance gaps.
  3. Lack of Real-Time Risk IntelligenceMost banks don’t have access to live risk metrics or early warning indicators, limiting their ability to act proactively.
  4. Over-Reliance on Critical VendorsHeavy dependency on a few providers without adequate contingency plans can disrupt operations if those vendors fail
  5. Lack of  risk-based approachThird parties differ significantly in risk exposure, data sensitivity, and operational criticality. A one size fits all approach is ineffective
  6. Rapid change of the threat landscapeIn risk posture, the likelihood and impact of an incident are dynamic through a third-party lifecycle. Over-reliance on a one-time snapshot gives the organization a false sense of security.
Solutions
  1. Implement centralized vendor inventory and automated mapping tools for full ecosystem transparency.
  2. Adopt integrated TPRM platforms to automate workflows, centralize documentation, and accelerate response times.
  3. Use continuous monitoring tools with real-time dashboards and early-warning alerts to stay ahead of threats.
  4. Conduct concentration risk analysis and develop robust exit strategies or backup providers.
  5. Implement a tiered, risk-based TPRM framework for a more effective and efficient program
  6. Adopt a data-driven algorithmic approach combining internal and external parameters to ensure ongoing visibility and reduce efforts and reliance on manual risk assessments

The Risk-Smart Journey of Third-Party Management

Third-party relationships introduce a range of risks that can impact security, compliance, and business resilience

An effective TPRM lifecycle provides a structured approach to identifying, assessing, & managing these risks at every stage of the vendor relationship

Governance, Strategy, and Oversight

Establishing a strong foundation for TPRM

Key Considerations:

  • Leadership Commitment
  • Clear Roles and Responsibilities
  • Regulatory Compliance and ERM Alignment
  • Regular Reporting and Review of the Program
Third-Party Identification and Risk Profiling

Understanding risk exposure across the TPSP ecosystem

Key Considerations:

  • Comprehensive Vendor Inventory
  • Risk-Based Tiering/ Classification
  • Due Diligence Scope based on Risk Tiering
  • Risk Appetite Thresholds and Mitigation Plans
Risk-Based Due Diligence and Pre-Engagement Assessment

Evaluating TPSP risks and ensuring compliance

Key Considerations:

  • Standardized Evaluation Criteria
  • Risk-Based Approach for Assessments across applicable Risk domains
  • Critical TPSP Deep-Dives
Contract Structuring and Legal Safeguards

Integrating risk and compliance into TPSP arrangements

Key Considerations:

  • Clearly Defines SLAs & Penalties
  • Regulatory & Legal Mandates
  • Exit Strategy & Contingency Planning
  • Security & Privacy Obligations
Ongoing Monitoring and Incident Response

Proactively tracking TPSP risks and managing incidents

Key Considerations:

  • Continuous (/Automated) Monitoring Mechanistms and Periodic Reassessments
  • Business Continuity and Resilience
  • Incident Management Playbooks
  • Third-Party Breach Notification Requirements
Technology Adaptability and Continuous Improvement

Refining processes for evolving and effective risk management

Key Considerations:

  • Defined KPIs & Metrics, Dashboarding
  • Feedback Loops for Refinement
  • Technology Neutrality and Evolution
  • Continuously Enhance to reflect Emerging Risks
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