The toolkit promotes a range of approaches by both financial institutions and financial authorities to achieve common objectives and goals. Promoting comparable, interoperable regulatory and supervisory approaches to third-party risk management across different areas of the financial sector and between jurisdictions can have a number of benefits, including:

- Streamlining the compliance obligations of financial institutions and service providers that operate on a cross-border basis without materially reducing the effectiveness of these obligations; and

- Facilitating coordination among financial authorities, thereby enhancing the effectiveness of national approaches while enabling multiple different regulatory regimes to coexist based on common expectations [Past examples of related areas where regulatory and supervisory interoperability has helped financial institutions and supervisory authorities, include the FSB's toolkit of Effective Practices for Cyber Incident Response and Recovery; the FSB's Recommendations to Achieve Greater Convergence in Cyber Incident Reporting; and the 2019 report of IOSCO's Cyber Task Force on existing frameworks for cyber regulation (identifying different but comparable core standards or frameworks: the National Institute of Standards and Technology (NIST) Cybersecurity Framework; the 2016 CPMI-IOSCO Guidance on Cyber Resilience; and the International Organization for Standardization (ISO) framework).].