A Call for Greater Multidisciplinary Oversight
As your company’s reliance on third parties grows, so too does the risk associated with doing business with these relatively unknown partners. Michael Volkov entreats companies to put in place more robust due diligence processes to minimize their third-party risks.
Believe it or not, but companies are still struggling with third-party risk management systems. I know this sounds hypercritical, but many companies continue to hang onto paper due diligence systems (sometimes with or without a SharePoint platform to store third-party due diligence documentation). An even smaller percentage of companies are automating their due diligence programs, a basic requirement for all companies with a minimum number of third parties.
It is disturbing that in the face of government focus on third parties, companies have not yet buttoned up their third-party risk management systems. A failure to act in this situation cannot be justified. The investment in an automated platform is relatively insignificant, especially when you consider relevant risks.
Assuming that your company is one of the lucky ones and has implemented an automated third-party risk program, a company should target its high-risk third parties. Companies regularly conduct business with the…