Third Party Risk

The downfall of Exela Technologies, a SaaS vendor, has been on our radar for quite some time.

Financial institutions rely heavily on third-party partners, from financial management to day-to-day operations. When a third-party provider fails, the entire organization can be compromised. To safeguard operations, financial institutions need to proactively monitor the financial health of their third-party partners, especially private ones, at least twice a year.

RapidRatings Executive Chairman James Gellert spoke to Bloomberg Law on the state of private company distress. Research by RapidRatings and Marblegate Asset Management highlighted that a large portion of middle market companies (the backbone of supply chains and vendor ecosystems for the world’s largest companies) are collapsing under today’s conditions.

The recent economic landscape has been a rollercoaster, with interest rates soaring and inflation fluctuating.