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Mastercard (MA) Aids Organizations to Manage Third-Party Risk
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Mastercard Incorporated (MA - Free Report) recently collaborated with the rapidly growing operational resilience company Interos to expand the latter’s multi-tier risk monitoring prowess to financial institutions. Simultaneously, the partnership reflects MA’s efforts to boost its security capabilities.
Powered by artificial intelligence and machine learning, the Interos platform plots, tracks and models the intricate network of business relationships that is integral to the global trade. With the platform offering an aggregate operational resilience risk score, organizations can conveniently assess those companies with which they are engaged in trade for identifying susceptibilities related to multiple risk dimensions.
Evidently, the financial institutions get prompt insights, which equip them well to eradicate risks across their business networks and merchant relationships in cyber, financial, ESG, restrictions, geopolitical and operational areas.
The latest tie-up highlights Mastercard’s sincere efforts to ease continual identification of risks for financial institutions, thus saving them from incurring exorbitant costs, which otherwise occur in case of potential disruption in one’s business ecosystem. The Interos platform with its widespread reach to more than 345 million entities and 18 billion business relationships seems the apt partner for complementing MA’s endeavor.
With the global risk landscape rapidly evolving via a continuous development of more sophisticated and complex business risks, this MA-Interos partnership seems aptly timed.
Prevalence of an increasing number of complex and interconnected supplier, and merchant business relationships might indicate the development of threats amid the third-party business network of an organization. This necessitates empowering enterprises with the capability to promptly address third-party risk, which unfortunately many organizations are still devoid of.
Per Interos research, a mere proportion (11%) of organizations keeps a continual check on their third-party risk. A study conducted by RiskRecon, a buyout of Mastercard, signals the increasing priority of 63% surveyed organizations to manage third-party risk.
Initiatives similar to the latest one also clearly indicate one of Mastercard’s most prominent endeavors, which is to upgrade security in the digital ecosystem. The COVID-19 pandemic further necessitated organizations to integrate digitization into operations as it has penetrated every sphere of life so far.
While digitization definitely brought numerous benefits to organizations and consumers, the trend to go digital prompted fraudsters to indulge in sophisticated methods of cybercrimes. This continues to be an alarming concern because payments received by organizations and the confidential data of consumers are compromised. Thus, companies offering a comprehensive portfolio of fraud detection solutions for varied industries with higher accuracy will be best positioned to gain from the current scenario.
Mastercard made consistent efforts in the form of partnerships or significant investments to enhance its cybersecurity suite. MA has a program in place to safeguard its network and platforms from cyber and information security threats. The technology company in the global payments industry also has the support of Security Operations Centers, Fusion Centers and the Mastercard Intelligence Center to immediately identify and address various cyber and physical threats.
Similar to Mastercard, other companies like Visa Inc. (V - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and American Express Company (AXP - Free Report) are continuously rolling out a diverse range of fraud detection solutions to protect merchants and consumers amid a growing digital economy.
Visa introduced the Advanced Identity Score in 2020 to minimize digital identity frauds and reduce its operational costs linked with identity-related forgeries. V steadily invests in technology to minimize the impact of fraud, and safeguard consumer and merchant-oriented information. The CyberSource solution by V boasts a diversified portfolio of payment and fraud management tools.
PayPal made substantial investments to utilize blockchain technology for boosting digital identity capabilities. PYPL’s risk management and tokenization ensure legitimacy of transactions and prevent any illegal or fraudulent dealings.
American Express strives hard to enhance its digital arm for assisting its merchants and Card members across the globe. In June 2021, AXP collaborated with a few online fraud-prevention companies like Accertify, Microsoft and Riskified. In July 2020, AXP launched its proprietary automated accounts payable (AP) solution American Express One AP, considering robust demand for AP solutions that secure payment processes via digitization.
American Express stock has gained 3.7% in the past six months. Meanwhile, shares of Visa and PayPal have lost 5.7% and 61%, respectively, in the same time frame.
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Mastercard (MA) Aids Organizations to Manage Third-Party Risk
Mastercard Incorporated (MA - Free Report) recently collaborated with the rapidly growing operational resilience company Interos to expand the latter’s multi-tier risk monitoring prowess to financial institutions. Simultaneously, the partnership reflects MA’s efforts to boost its security capabilities.
Powered by artificial intelligence and machine learning, the Interos platform plots, tracks and models the intricate network of business relationships that is integral to the global trade. With the platform offering an aggregate operational resilience risk score, organizations can conveniently assess those companies with which they are engaged in trade for identifying susceptibilities related to multiple risk dimensions.
Evidently, the financial institutions get prompt insights, which equip them well to eradicate risks across their business networks and merchant relationships in cyber, financial, ESG, restrictions, geopolitical and operational areas.
The latest tie-up highlights Mastercard’s sincere efforts to ease continual identification of risks for financial institutions, thus saving them from incurring exorbitant costs, which otherwise occur in case of potential disruption in one’s business ecosystem. The Interos platform with its widespread reach to more than 345 million entities and 18 billion business relationships seems the apt partner for complementing MA’s endeavor.
With the global risk landscape rapidly evolving via a continuous development of more sophisticated and complex business risks, this MA-Interos partnership seems aptly timed.
Prevalence of an increasing number of complex and interconnected supplier, and merchant business relationships might indicate the development of threats amid the third-party business network of an organization. This necessitates empowering enterprises with the capability to promptly address third-party risk, which unfortunately many organizations are still devoid of.
Per Interos research, a mere proportion (11%) of organizations keeps a continual check on their third-party risk. A study conducted by RiskRecon, a buyout of Mastercard, signals the increasing priority of 63% surveyed organizations to manage third-party risk.
Initiatives similar to the latest one also clearly indicate one of Mastercard’s most prominent endeavors, which is to upgrade security in the digital ecosystem. The COVID-19 pandemic further necessitated organizations to integrate digitization into operations as it has penetrated every sphere of life so far.
While digitization definitely brought numerous benefits to organizations and consumers, the trend to go digital prompted fraudsters to indulge in sophisticated methods of cybercrimes. This continues to be an alarming concern because payments received by organizations and the confidential data of consumers are compromised. Thus, companies offering a comprehensive portfolio of fraud detection solutions for varied industries with higher accuracy will be best positioned to gain from the current scenario.
Mastercard made consistent efforts in the form of partnerships or significant investments to enhance its cybersecurity suite. MA has a program in place to safeguard its network and platforms from cyber and information security threats. The technology company in the global payments industry also has the support of Security Operations Centers, Fusion Centers and the Mastercard Intelligence Center to immediately identify and address various cyber and physical threats.
Shares of Mastercard have inched up 0.4% in the past six months against the industry’s decline of 14.3%. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Similar to Mastercard, other companies like Visa Inc. (V - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and American Express Company (AXP - Free Report) are continuously rolling out a diverse range of fraud detection solutions to protect merchants and consumers amid a growing digital economy.
Visa introduced the Advanced Identity Score in 2020 to minimize digital identity frauds and reduce its operational costs linked with identity-related forgeries. V steadily invests in technology to minimize the impact of fraud, and safeguard consumer and merchant-oriented information. The CyberSource solution by V boasts a diversified portfolio of payment and fraud management tools.
PayPal made substantial investments to utilize blockchain technology for boosting digital identity capabilities. PYPL’s risk management and tokenization ensure legitimacy of transactions and prevent any illegal or fraudulent dealings.
American Express strives hard to enhance its digital arm for assisting its merchants and Card members across the globe. In June 2021, AXP collaborated with a few online fraud-prevention companies like Accertify, Microsoft and Riskified. In July 2020, AXP launched its proprietary automated accounts payable (AP) solution American Express One AP, considering robust demand for AP solutions that secure payment processes via digitization.
American Express stock has gained 3.7% in the past six months. Meanwhile, shares of Visa and PayPal have lost 5.7% and 61%, respectively, in the same time frame.