Episode 182: Third-Party Resiliency and Regulatory Pressure

This week, Tony and Wei-Shen talk about third-party resiliency and how interconnected systems are. They discuss how disruptive outages and vulnerabilities are to the industry and the implications on systemic risk. https://www.waterstechnology.com/regulation/4818706/vendors-feel-heat-as-regulators-pile-pressure-on-third-party-resiliency https://www.waterstechnology.com/regulation/4813941/google-exec-regulators-insisting-on-multi-cloud-for-financial-firms https://www.waterstechnology.com/data-management/4515601/the-future-of-cloud-regulation-the-authorities-are-taking-notice 1:00 – Tony starts by talking about how new laws in Europe will require fintech firms to scrutinize their control frameworks to deal with system failures. 3:30 – The challenge of understanding third-party and fourth-party vendor relationships. 5:00 – They delve into the complexities of validating their relationships with third-party vendors, and beyond. 7:00 – This is where the fight begins. How much will vendors push back on revealing potentially sensitive and proprietary information to the regulators? 9:30 – If regulators are asking firms to adopt multi-vendor strategies, what are the cost implications? 13:00 –Tony and Wei-Shen then talk about how it’s the small errors that lead to major blow-ups, and how monitoring that is a huge challenge. 17:30 – They wrap up the podcast discussing their favorite Oscar-nominated films, who deserved to win, and what’s next on their watch list.