COMPLIANCE & RISK / Third party compliance risk management

Excerpt from session:

Leaving the ‘assessment’ in third party due diligence risk assessments?

As the compliance community continuously wades through Government guidance documents, opinion procedures and peer-to-peer recommended best practice, industry standards present yet another guidepost for companies to measure their third party management procedures against…or do they? While it’s true that the international business community wins when companies across supply and marketing chains work to a common denominator, standardization can only go so far.

Effective third party management, like anti-bribery compliance, is not like a fire code or a health standard. On the contrary, the most effective third party management systems strike the delicate balance between art and science. Collecting information from several data points, many of which will be subjective in nature and almost always exclusive to the third party, the best third party management systems rely on one’s knowledge of the local culture, the third party’s reputation and most importantly, the company’s risk appetite.

Main Takeaways:

  • What you don’t know could hurt you – best practices for building a third party management system best tailored to the needs and risks of your business
  • Turn back now – an overview of the most common third party “red flags” that companies ignore
  • When to walk away – insights for using context and judgment to determine what is/is not tolerable risk for your company