Addressing Risks from Your Supply Chain and Third Parties
Working with third parties is a reality of business. From cloud storage to payroll, organizations rely on vendors for business-critical functions. But any risk introduced by third-party providers is the responsibility of the company who hired them.
Agencies like the U.S. Department of Justice, Securities and Exchange Commission, and Serious Fraud Office have increased their scrutiny on third-party risk management programs and require organizations to continuously identify and manage risks throughout the relationship with their vendors, suppliers, contractors, and other third-party partners. In addition to the initial due diligence, companies must integrate third-party risk management efforts into daily operations; frequently assess the relationship, including its provided goods and services, for risks and compliance; and continuously evolve risk management measures to accommodate change.
Vendor management includes more than just watching for bribery and corruption, however. Cyber security, data protection, and compliance with regulations like GDPR are the latest concerns for vendor management systems – and the entire supply chain is included in the scope of vendor risk. Additionally, industry, geography, and relationship to the government all add nuance to risk – but manual vetting processes that worked for a hundred vendors can't be scaled as the organization grows. An effective third-party risk management programs is a key requirement for stable growth.
See how a vendor risk-management system can help