Latest news with #KPMGMiddleEast
Zawya
22-07-2025
- Business
- Zawya
KPMG report warns: Your business is only as secure as your weakest vendor
Riyadh, Saudi Arabia – As businesses increasingly rely on external partners to power their operations—from cloud services to logistics and software — a new report by KPMG Middle East urges leaders to pay closer attention to a growing but often overlooked vulnerability: third-party cyber risk. A new report titled 'As strong as your weakest link: Critical considerations in Third-Party Risk Management' explores how external vendors, while essential to business growth and efficiency, are becoming a major entry point for cyber threats. The message is simple but urgent: even if your company invests heavily in cybersecurity, a single weak link in your vendor chain can compromise it all. Recent examples—from high-profile data breaches to regulatory fines—reveal just how much damage can stem from gaps in third-party oversight. The report highlights that 73 percent of surveyed organizations admitted that inefficiencies in how they manage third-party risk have left them exposed to reputational damage. Alarmingly, nearly every company studied—98 percent—had at least one vendor suffer a cyber breach in the past two years. 'These aren't hypothetical risks—they're real, and they're growing,' said Ton Diemont, Partner and Head of Cybersecurity – Saudi Arabia, Jordan and Lebanon at KPMG Middle East. 'Attackers today are strategic. They don't just target big corporations directly. They look for the weakest partner in the supply chain and exploit the lack of visibility or oversight. That's why managing vendor relationships is no longer just a procurement concern—it's a business-wide priority.' The report sheds light on a number of recurring challenges. Many businesses continue to struggle with limited insight into their vendors' cybersecurity practices. Contracts often lack clarity on key issues like breach reporting or data protection, and small or mid-sized companies in particular may not have the resources to properly assess every third-party they work with. In some cases, vendors themselves rely on subcontractors—adding yet another layer of complexity. When something goes wrong, these blind spots can quickly lead to operational disruption, regulatory penalties, or loss of customer trust. While the risks are serious, the report also outlines a clear path forward. Companies that have taken a structured approach to third-party risk management—by thoroughly vetting vendors before onboarding, embedding cybersecurity requirements into contracts, and implementing continuous monitoring—have shown greater resilience and faster response when incidents occur. KPMG's experience advising organizations across the Middle East shows that those who treat vendor risk as a core governance issue, rather than a one-off compliance task, are better prepared to adapt as threats evolve. The report also looks to the future—specifically, how generative AI is transforming the way companies can manage third-party risks. By automating time-consuming tasks like contract reviews, compliance checks, and threat detection, AI is helping teams work smarter, respond faster, and reduce operational costs. 'This is a major shift,' adds Diemont. 'We're moving from reactive to proactive. Businesses that embed AI into their vendor risk processes are not only more secure—they're also more agile and cost-effective.' What's clear is that third-party risk is no longer just a technical issue—it's a strategic one. And in today's regulatory landscape, staying ahead of it is becoming non-negotiable. As countries like the UAE and Saudi Arabia strengthen compliance requirements, organizations that lack a strong third-party risk framework may find themselves falling short, not just in audits, but in trust. 'This isn't just about technology,' added Mohammed Alshaghdali, Associate Director and TPRM Lead at KPMG Middle East. 'It's about protecting relationships. When you secure your extended network—your vendors, partners, and suppliers—you're also safeguarding your customers, your reputation, and the future of your business.'
Zawya
25-02-2025
- Business
- Zawya
Global experts and policymakers convene at KPMG's Public Sector Excellence Forum 2025 in Riyadh
The event featured ten thought-provoking sessions with over 25 local and international speakers across high-profile panel discussions and fireside chats on AI-driven transformation, economic sustainability, and public sector innovation. KPMG launched the Blueprint for Intelligent Economies, a strategic framework designed to help governments leverage technology and innovation to enhance economic resilience and governance effectiveness. Riyadh – Public sector officials, industry experts, and policymakers gathered in Riyadh for the Public Sector Excellence Forum 2025, hosted by KPMG Middle East. Under the theme, "Governing with impact: Delivering public value," the forum explored leadership, technology, sustainability, and risk resilience, shaping the future of governance. At the opening of the event, Dr. Abdullah Al Fozan, CEO at KPMG Middle East, emphasized cross-institution collaboration as critical to public sector success, stating, "Excellence in the public sector is not just an end goal but an ongoing process that requires a clear vision, effective collaboration, and shared commitment. Challenges exist, but when efforts are united and institutions work together, they can easily be overcome." High-profile speakers from Saudi Arabia's public sector included H.E. Dr. Munir Eldesouki, President of KACST, who was interviewed by entrepreneur Mansour Alsanooni on how great leaders inspire action, and Eng. Suliman AlRumaih, Group CEO of SALIC who delved deeper into securing food, water, and energy sustainability. Prof. Bent Flyvbjerg, Professor at the IT University of Copenhagen and author of the groundbreaking study on project management, 'How Big Things Get Done,' took a data-driven approach to large-scale projects and presented critical insights into the successful delivery of such projects. The panel on capabilities – one of the four foundational themes of technology, sustainability and risk – featured H.E. Dr. Bander Alsajjan, Director General at the Institute of Public Administration, Dr. Mohammed Alabdulaali, Assistant Minister at Ministry of Health and H.E. Hekia Parata, Former New Zealand Minister of Education, Minister of Energy and Resources, and Minister for Women, who discussed how to build exceptional leaders during exceptional times. Ismail Alani, Head of Government and Public Sector at KPMG Middle East who also sat on the panel, emphasized the importance of foresight in public sector leadership, 'Exceptional leadership is not about reacting to change but anticipating it. In today's rapidly evolving world, public sector leaders must embrace agility, innovation, and strategic foresight to drive meaningful impact.' Further, the Blueprint for Intelligent Economies was launched and introduced by KPMG's Global Head of Government, Brenda Walker and Maz Hussain, Head of AI for KPMG Middle East. The publication, co-developed by KPMG and the World Economic Forum, presents a framework that focuses on AI-driven economies in which the technology is leveraged for the public good. The technology panel explored human capital and AI-driven governance models – emphasizing AI adoption, workforce upskilling, and cybersecurity in public sector transformation, while the sustainability panel discussed financing models for sustainable development – and featured Eng. Hashim Al Dabbagh, CEO as Aseer Development Authority and Stephen Beatty, Chairman of the Advisory Board at the National Center for Privatization. The fourth theme, risk, was approached with two sessions, on predictive risk management tools, and the anticipation of systemic shocks – black swans and unknown unknowns, featuring Dr. Mohammed Aldhoayan from the National Cybersecurity Authority as global KPMG experts in dynamic risk assessments and geopolitics. POLITICO Executive Editor Anne McElvoy and Adrian Monck, Senior Adviser to Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence moderated the forum's sessions. Hanan Alowain, Partner in the Government and Public Sector at KPMG Middle East, closed the event by reflecting on the forum's insights, emphasizing the shared commitment to progress, resilience, and collective prosperity.
