How can compliance programs support their firm’s recovery from COVID-19? Kroll’s Daniel Hartnett suggests that due diligence best practices can help compliance officers assist their firm’s efforts to rebuild the global supply chain network in a likely environment of “doing more with less.”
The COVID-19 pandemic is altering global supply chains in ways that will not be recognizable when compared to the outbreak. Third parties up and down a company’s supply chain network are experiencing various levels of disruption, and many are unlikely to survive. Of those that do survive, many are likely to emerge in a different form. Geographic concentration, once seen as a supply chain strength, is increasingly identified as a weakness to be corrected. As a result, even with the various support efforts governments are enacting, COVID-19 is likely to have a lasting effect on global supply chain networks.
Because of these changes, companies that rely upon global supply chains will face increased pressure to more effectively and efficiently manage their third-party risk. On the one hand, they need to rapidly identify, screen and onboard new third parties to replace those that can no longer meet their firm’s needs due to COVID-19 disruptions. At the same time, however, companies need to continue to minimize their…
