Excerpt from session:
Third Party Due Diligence: Find risks and Implement Effective Mitigation Plans
Once you start a risk assessment in your company, you will notice that some risks come along with the relationships between your company and its business partners. Specially, because there are regulations that can make your company liable for an illegal act of its business partner. The big problem with this situation is that those risks are somewhat harder to mitigate properly, because it does not depend only on your company´s culture or internal procedures.
Aiming to remediate those risks, companies started to implement many processes and controls, such as Third Party Due Diligences. Today it is a common sense that knowing your business partners, the risks involved and creating mitigation plans, can in fact reduce or eliminate your company´s risks. Therefore, this process is vital for every effective compliance program.
Some popular ways to mitigate risks found in a Third Party Due Diligence are: compliance provisions; supplier’s code of conduct; trainings; audits; and business restrictions. All these controls look great on paper, but how do you make sure they are implemented and moreover, how to make sure they are effective when you have hundreds of business partners, that probably have their own compliance controls in order?
It is very important to keep in mind the purpose of the process, the specific risks you want to mitigate and elaborate the best plan to accomplish your objectives, keeping your feet on the ground. We will discuss all these in this segment. Let´s share ideas and best practices that can make everybody´s life easier!
- How to structure an effective Third Party Due Diligence
- How to find risks and mitigate them properly
- Best practices and tips on implementing mitigation plans