Collaborative management system mitigates third party risk, cuts costs and provides easy-to-access, accurate analytical reports
Portland, Ore. – NAVEX Global™ today announced the expansion of its ethics and compliance solution portfolio to include Third Party Risk Management, which helps organizations address such risks as corruption, bribery and fraud. The solution automates and standardizes third party due diligence so global companies can finally perform affordable, risk-proportionate reviews of all third party business partners.
Most organizations limit due diligence to a subset of third parties, placing focus where exposure is thought to be greatest but creating substantial risk through inevitable gaps and lack of consistent evidentiary record. NAVEX Global’s scalable solution is modeled on current regulatory guidance and utilizes a new technology platform to allow every third party to be risk assessed and monitored on a continual basis.
“When you consider supply chains and distribution channels, even small organizations can have thousands of third party relationships that each requires at least a baseline level of scrutiny,” said NAVEX Global Chief Products Officer Bob Conlin. “Automation is the key to adequately addressing third party due diligence. Our solution not only allows companies to assess and monitor risk associated with existing third parties, it also supports an automated process to ensure that all new third party relationships are reviewed at the time of onboarding. Issues are flagged for further review and ongoing monitoring is activated.”
The U.S. Department of Justice reported that in 2012 more than 90 percent of its anti-corruption actions involved a company’s use of third parties. Components of identifying risk – including entity identification, financial background checks, sanctions and watch lists checks, media and reputation audits, adverse affiliations or involvement with politically exposed persons (PEPs) – can be audited internally and by hand, but the process is too costly and unsustainable. NAVEX Global’s solution streamlines the procurement and access to third party demographic data, along with the following features:
- Improves internal processes and controls;
- Focuses compliance efforts and budgets on the highest risks;
- Provides a continuous evaluation of base-line risks for all third parties; and
- Manages the ongoing expense of third party compliance.
Escalating levels of due diligence can be performed on third parties based on the results of an initial screening and customizable questionnaires can be deployed for a deeper due diligence analysis. The process cross references information from more than 400 international sanction, watch and debarment lists. Additionally, the solution can monitor for both credit worthiness and any degradation or material changes that may not be reported by a third party. The solution’s media services program combs through more than 9,000 different outlets and media services to determine adverse media concerns related to money laundering, terrorism and fraud.
“Our product development is informed by the world’s largest ethics and compliance client community,” saidShanti Atkins, president and chief strategy officer of NAVEX Global. “We saw our clients struggling to manage third party risk with incomplete and haphazard internal systems, or with overly complex and cumbersome solutions that did not support a comprehensive and integrated approach. Our solution provides unprecedented speed, scope and ease-of-deployment to combat not only escalating corruption and bribery risk, but broader third party risks as well.”
A critical part of the NAVEX Global Ethics & Compliance Ecosystem, the Third Party Risk Management solution addresses a significant gap in compliance program needs and provides the proper scope of due diligence to effectively protect organizations and demanded by regulators. NAVEX Global has a client base of more than 8,000 organizations globally and an unsurpassed commitment to quality and continuous innovation. Nearly three-quarters of the Fortune 100 and half of the Fortune 1000 use NAVEX Global’s services to help them navigate ethics and compliance issues.
More information on the NAVEX Global’s Third Party Risk Management solution is available atwww.navexglobal.com/products/third-party-risk.
NAVEX Global is the trusted global ethics and compliance expert for more than 8,000 clients in over 200 countries – the largest ethics and compliance community in the world. NAVEX Global provides a comprehensive suite of solutions to manage governance, risk and compliance (GRC), providing critical cross-program insights through unmatched expertise and actionable data. More information can be found at www.navexglobal.com.