New Tier 1 Third Party Performance Report

As part of our commitment to keep you informed and aware of our key third parties’ performance, we have replaced the “Tier 1 Client Heat Map” with a new, more detailed Tier 1 Third Party Performance Report. This quarterly report, attached, offers you a more robust view of Tier 1 performance. It also provides insight into incidents or open items that we manage with our critical third parties to ensure their performance best supports Cenlar and our clients.

This new report is part of Cenlar’s ongoing effort to strengthen our Third Party Risk Management (TPRM) program. You may notice that the list of Tier 1 Third Parties is a little different than what you have seen in the past. This is the result of another enhancement that we have made to our TPRM program, the redesign of our Materiality Assessment (MA). Previously, the MA was a very high-level determination of a third party’s materiality based on a small number of assessment questions. The new tool now identifies both the materiality of the vendor (using an initial set of eight questions across multiple risk criteria) and further establishes the risk level (Tier 1, 2, or 3) using 26 additional assessment questions across multiple risk domains.

As a result of these changes, some of our operational third parties have changed risk tiers, and the attached report reflects those changes.