Third Party Risk Management - Vendor Risk Management
Vendor Management has been under the regulatory scanner during the recent years. Its growing importance is mainly due to the fact that the complex inter-relationships of various companies is resulting in inherent systemic risk and over-reliance on third parties. Companies today are outsourcing almost everything and building business models with just a small percentage of business functions internally.
If you thought third party is all about vendors, think again. Employing a third party means more than just vendor risk management. It also involves suppliers, agents, distributors, accountants, intermediaries and sometimes even customers. All these stakeholders are creating risks for your organisation at all times. Companies have to ensure that there are processes to protect confidential IT information, ensure ethical dealings, mitigating noncompliance with code of conduct and ultimately managing reputation risk.
Outsourcing risk or third party risk are often he silent killers because they can blow out of proportion in a short span of time. A sales agent misbehaving with an important customer, a data theft at outsourced vendor's office are just some examples. All this requires a different risk management lens that focuses specifically on third party risk as a unique risk. Your operational risk frameworks are not adequate.
Outsourcing Risk Management Services
Today, as more and more business processes are outsourced, there is a unique need to manage outsourced partners and relationships in a way that is as dynamic as the competition itself. From legal documentation to BCP to profitability from such outsourced arrangements, the risks are many. Riskpro has deep expertise in outlining good vendor risk management and specifically outsourcing risk management. We help you to build a good framework for managing outsourcing lifecyle.
Supply Chain Risk Management
As outsourcing becomes the norm, all your suppliers or third parties are likely to in turn have third parties, who for you are fourth parties. So, as supply chain becomes challenging, global and more complex, it is important to get a sense of the potential disruption caused directly by your suppliers or your supplier's suppliers. Therefore, supply chain risk management assumes great importance as we go global. Talk to us for more information.