Banks don't transition away from TPRM – it stays in place for vendor management. What changes is that open finance introduces third-party risks a periodic, vendor-focused review process wasn't built to catch: continuous exposure across a multi-party open finance chain, rather than vendor relationships assessed once a year. Banks need a complementary set of practices built for that difference, running alongside TPRM rather than replacing it – starting with mapping the open finance chain itself, then accrediting every participant in it, monitoring it in real time, and routing liability to whoever is responsible when something fails.
The open finance risk framework
- Map the open finance chain: Establish and maintain visibility into who is connected to whom across the network – the intermediaries, sub-processors, and third-party providers behind each relationship – since liability can't be routed to a party a bank doesn't know exists.
- Dynamic accreditation: Instantly verify the regulatory permissions, technical setups, and security postures of incoming third-party providers, rather than running a static, manual review for each one.
- Continuous network monitoring: Track API usage patterns, security anomalies, and compliance status on an ongoing basis, rather than at scheduled intervals.
- Automated risk assessment: Flag risk score changes that breach risk appetite in near real-time, so exceptions surface as they occur.
- Liability allocation: Ensure that when operational failures occur, accountability and financial liability are dynamically routed to the responsible participant, rather than defaulting to whoever holds the customer relationship.
About Invela
Invela is the infrastructure layer that makes open finance trustworthy – accrediting who's in the network, monitoring risk in real time, and ensuring liability lands in the right place.
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