{"id":5549,"date":"2020-04-16T14:50:55","date_gmt":"2020-04-16T14:50:55","guid":{"rendered":"https:\/\/crigroup.com\/?p=5549"},"modified":"2022-06-16T09:02:14","modified_gmt":"2022-06-16T09:02:14","slug":"covid19-top-risk-management-concerns","status":"publish","type":"post","link":"https:\/\/crigroup.com\/ar\/covid19-top-risk-management-concerns\/","title":{"rendered":"COVID-19: Top risk management concerns"},"content":{"rendered":"

A global crisis calls for a fresh due diligence and risk management review of your company’s third-party partnerships<\/strong><\/span><\/h2>\n

The worldwide coronavirus pandemic has disrupted life in just about every word, from personal health concerns and social distancing to shelter-in-place mandates and business closures. But in the corporate world, life plods on. Critical concerns about ongoing sales and revenue, keeping personnel employed, safety issues inside the workplace, and uncertainty about the future make business leaders lose a lot of sleep these days.<\/span><\/p>\n

An added element that global organisations should genuinely be concerned about is the ongoing viability of the supply chain. The pandemic is affecting different parts of the world at varying levels, so it’s vitally important to be continually vigilant in how the crisis affects your third-party suppliers and how those supply chain partners behave and maintain legitimacy in these uncertain times.<\/span><\/p>\n

The healthcare industry is on the front line of the global supply chain battle, as it feverishly addresses an unprecedented demand for personal protective equipment. The shortage of PPE (Personal Protective Equipment) has forced many organisations \u2013 out of sheer desperation \u2013 to seek and purchase supplies from just about any outside source that can produce what’s needed. This panic buying has led to unscrupulous manufacturers producing and flooding the market with sub-standard products that, aside from being grossly overpriced, are putting an untold number of lives in peril. Further, the global demand for PPE has fostered rising occurrences of bad actors who see lucrative opportunities for\u00a0bribery<\/a>, tax evasion and money laundering amid crisis and confusion.<\/span><\/p>\n

The pandemic has thrown many other industries into complete disarray, which will naturally open the doors for opportunists to do what’s necessary to take advantage of the situation. And suppose your organisation happens to be affiliated with these bad actors. In that case, the long-term effects can be potentially devastating, affecting the organisation’s reputation, and resulting in untrusting customers, lost business, loss of market value, decreased share price, litigation, and any number of regulatory penalties.<\/span><\/p>\n

Crisis Situations Require Enhanced Due Diligence<\/span><\/h2>\n

A\u00a0

(3PRM\u2122)\u0625\u062f\u0627\u0631\u0629 \u0645\u062e\u0627\u0637\u0631 \u0627\u0644\u063a\u064a\u0631<\/div><\/a>\u00a0Program is not a passive process. It requires time and effort, and, as we’ve witnessed during the present global crisis, the risks associated with Third-Party partnerships are continually evolving. Those outside risks can be found on many operational levels, from a supplier’s present working conditions and the protection of customer data to safeguarding the company’s intellectual property and suspicious changes in pricing and payment terms, among others. Here are several items to consider in re-evaluating the company’s relationship with Third-Party partners during this critical period:<\/span><\/p>\n