It’s highly probable that, at some point, organisations that affiliate with outside providers will eventually have to deal with an operational interruption resulting from a third-party related issue. The risks involved in partnering with outsiders hasn’t changed over the centuries. It’s the potential liability that’s been ratcheted up several notches. International borders have been ripped down. Technology has improved the way businesses communicate. Easy access to data and information enables the media to report on the business news before a business can properly respond. And the markets are quick to form opinions based on a 24/7 on-demand news cycle.
The result of this increased liability is problematic. Business litigation has skyrocketed. Corporate reputations are constantly being assaulted. Business strategies are forever shifting. Board members are becoming increasingly subjected to intense scrutiny from outside critics. And a highly educated market responds immediately with their pocketbooks.
Third-party risk is a “board level” issue
The many recent data breaches at Fortune 500 companies such as JPMorgan Chase, Apple iCloud, Home Depot and Target raises serious concerns about the rigor of the private sector’s information security and third-party risk management practices. Regulations regarding third-party risk have been updated on constant basis in the recent years because of it. The heavy media attention and penalties by industry regulators has put third-party risk management in the spotlight. And it is now regarded as a top priority for all levels of management within large organisations.
Various regulators and industry bodies have all issued their third-party risk management guidelines creating an overlap of requirements depending on the types of services that the organisation may have outsourced.
CRI Group having a network of local subject specialist operatives across the Middle East and Asian regions can extend helping hand and offer integrity due diligence being preemptive measures against:
- Experiencing financial loss when a third-party provider failed;
- Losing customers because of poor-quality service from a third-party;
- Exposing breaches to data systems because of poor security practices by a third-party;
- Experiencing supply chain issues due to poor disaster recovery procedures by the third-party;
- And being exposed to litigation because of relationships with an outside provider that significantly violated contractual terms, potentially resulting in regulatory exposure.
When Working with Third-Party Providers, CRI Group designed the solution: “3PRM” – the “Third-Party Risk Management” Strategy! A Proactive Approach including offering ISO37001:2016 Anti-Bribery Management System certification and training to mitigate the risks involved with Third-Party affiliations to protect the organisation from liability, business interruption and brand damage.
Are you establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business?
Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. Contact us today to get started on implementing a robust program that will serve you well for years to come. Get your FREE QUOTE now!