Globalization, increased regulatory pressures and the growing natures of business networks with external vendors, suppliers and agents outside the company are making the business environments more complex. Potential affiliations and Third party relationships with outside partners, suppliers, customers and other sources; present reputational, compliance and financial risks that must be managed effectively. The importance of third party risk management strategy is inevitable while businesses are performing pre-merger and acquisition research, pre-IPO due diligence, new clients’ engagement, new employee recruits, contracts or foreign business partners and requires a consistent and audit-worthy AML and anti-corruption compliance program.
The biggest challenge for today’s organizations is to perform effective due diligence on third party relationships. (KPMG – Anti-Bribery and Corruption survey)
Resultantly, organizations are seeking professional help to achieve their objectives. The 3PRM service provided by CRR provides a proactive approach to mitigating risks from third-party affiliations, protecting the organization from liability, brand damage and harm to business while establishing legal compliance, financial viability and integrity levels of those affiliated.
The prime focus of CRR’s 3PRM strategy is to provide effective Third party risk assessments and due diligence while meeting the contracting requirements. CRR helps prepare cost-effective, timely, and responsive reports. Ignorance – Failure to successfully execute the risk management process can even lead to criminal liabilities in future.
The well designed 3PRM platform at CRR transforms the due diligence process out of manual processing to flexible, automated research and analysis with an overall reduction of administrative tasks ;
- Pre-scan – the team understands and assesses the inherent risks involved prior to commencing a thorough due diligence process.
- Assessment – a deep assessment into financial, regulatory, reputational, and governance risks, is performed
- Mitigation – suggest mitigation activities to be performed by the parties involved
- Monitor – monitor the changes taking place after process implementation, ensuring the contemporary nature of information, and compliance to policies.
Typical features of our third party risk management program:
- Real-time, centralized and transparent workflow
- Automated flow of information to internal and external clients
- Real-time reporting
- Establishing capability to perform risk analysis
- Provides an overview of all third-party activity and status – view by region, category, risk rating, status or date
- Ensures compliance with existing due diligence processes
- Delivers insightful and actionable data and analysis