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. However, the risks involved in partnering with outsiders are many and complex. International orders 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 potential liabilities have been ratcheted up several notches. More than ever, managing the third party risk is key to businesses’ survival.
Managing the third party risk
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
Recent data breaches at Fortune 500 companies such as JPMorgan Chase, Apple iCloud, Home Depot, and Target raise serious concerns about the private sector’s information security and third-party risk management practices. Regulations regarding third-party risk have been updated constantly in recent years because of it. Industry regulators’ heavy media attention and penalties have spotlighted third-party risk management. 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 services that the organisation may have outsourced.
CRI® Group has a network of local subject specialist operatives across the Middle East and Asian regions, can extend a 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 significantly violated contractual terms, potentially resulting in regulatory exposure.
When Working with Third-Party Providers, CRI® Group designed the solution: “3PRM” Third-Party Risk Management Strategy! A proactive approach 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 implement a robust program that will serve you well for years to come.