#Japan #Tokyo #risk management #KPMG #TPRM Survey

Introduction

In an age where third-party collaboration is pivotal for business operations, managing associated risks has become increasingly complex. KPMG Forensic & Risk Advisory (KPMG FRA) has released the Japanese version of its "2026 Global Third-Party Risk Management (TPRM) Survey," shedding light on the challenges enterprises face in mitigating risks throughout their value chains.

Key Findings of the Survey

The survey includes insights from 851 industry experts across the Americas, Europe, the Middle East, and Asia-Pacific. Here are some pivotal observations:

1. Core Drivers of TPRM: A majority of organizations now identify regulatory compliance (45%) and cyber risks (48%) as central components of their TPRM strategies. This reflects a trend where many organizations are still taking a defensive stance towards TPRM.

2. Integration of TPRM and ERM: Despite some advancements, the integration between TPRM and Enterprise Risk Management (ERM) remains insufficient. Only 53% of respondents indicated their organizations are largely integrated, with a mere 18% achieving complete integration.

3. Scaling TPRM Approaches: Many organizations continue to employ limited strategic models to enhance TPRM effectiveness. The adoption of a comprehensive end-to-end managed service model within TPRM is only present in 5% of the firms surveyed.

4. Utilization of AI: Although about half of the respondents reported using AI tools within their TPRM strategies, only 22% found these tools to be "very effective," highlighting inconsistencies in effectiveness among organizations.

5. Data Quality and Decision-Making: The survey highlighted that only 17% of organizations maintain top-tier data quality, which plays a crucial role in decision-making reliability. Improving data quality is identified as a significant opportunity for enhancing TPRM success.

Strategic Recommendations

The survey underscores that elevating TPRM requires more than gradual improvements; it necessitates a strategic transformation. Key recommendations for organizations include:

• - Focusing on risk-based priority areas that can bolster the overall risk framework.
• - Aligning TPRM strategies with ERM to achieve comprehensive visibility of risk across the enterprise.
• - Building robust, reliable data infrastructure that supports decision-making.
• - Effectively leveraging AI and automation focused on organizational goals.
• - Considering the risks extending beyond third parties to nth parties—a crucial part of creating comprehensive risk profiles.

In essence, TPRM should evolve from mere compliance responsibilities to becoming a strategic foundation that supports resilience and competitive advantage for organizations.

Implications for Japanese Enterprises

As uncertainties rise and the complexities of the third-party ecosystem intensify, Japanese companies must prioritize the development of strategic TPRM frameworks that emphasize resilience and competitive differentiation. Critical aspects to focus on include:

• - Integration with ERM for a comprehensive risk strategy,
• - Establishing a reliable data infrastructure,
• - Ensuring the effectiveness of technology utilization,
• - Allocating resources based on an integrated risk framework to enhance TPRM effectiveness.

Conclusion

The insights from KPMG's 2026 Global TPRM Survey provide crucial knowledge for organizations seeking to navigate the complex landscape of third-party risks. By adopting the recommendations highlighted in the survey, companies can better position themselves to withstand potential challenges and seize opportunities for growth and resilience.

For further insights and detailed findings, readers can access the full report and executive summary from KPMG.

Company Profile: KPMG Forensic & Risk Advisory

KPMG Forensic & Risk Advisory is a joint venture initiated by KPMG Japan that started operations on April 1, 2025. The firm specializes in supporting Japanese enterprises in building integrity-based business foundations by providing seamless support from fraud response to prevention and detection.

Headquarters: 1-9-5 Otemachi, Chiyoda-ku, Tokyo, Japan
Representatives: Hiroyuki Nishijima, Yoshihiro Kurokawa
Website: KPMG Forensic & Risk Advisory

Survey Overview

• - Survey Name: 2026 Global Third-Party Risk Management (TPRM) Survey
• - Conducted: 2025
• - Participants: 851 professionals from Americas, Europe, Middle East, Asia-Pacific
• - Demographics: Executives, department heads, and risk management, compliance, and information security personnel
• - Method: Web-based survey