Governance of Third Parties and Risk Management
Keep partners close for better management and mitigation of risks
Among the main factors that drive the need for improved governance of third parties and risk management are expectations of growth in outsourced services in organizations, new regulations in the domestic and international sectors and the high speed at which information is released in the digital era.
To remain competitive and in line with market trends, organizations are increasingly attempting to improve management of third parties and suppliers and how they handle vulnerabilities in the various dimensions of their business, mainly with respect to risks that can damage their image and reputation.
- An ascending practice
- Governance of Third Parties and Risk Management program methodology
- Main benefits of integrated management of third parties based on risk
An increasingly common practice
The global survey "Third-party governance and risk management: focusing on the climb ahead", conducted by Deloitte, shows how extended enterprise risk management (EERM) has continued to benefit from greater executive awareness allowing organizations to tackle the topic with renewed focus and investment. This is even more important due to the threats of high profile business failure, illegal third-party actions, or regulatory action with punitive fines.
Governance of Third Parties and Risk Management program methodology
Deloitte’s multidisciplinary market operations cover organizations’ entire value chain. Consequently, it has developed an approach that addresses the main concerns of managers with regard to governance of their third parties and suppliers throughout the entire relationship cycle.
Main benefits of integrated management of third parties based on risk
The D.Tracker tool was developed by Deloitte Brazil in response to market trends and the growing importance of the chain of suppliers for companies. The D.Tracker brings more agility in third parties due diligence, as well as reducing operational costs and client-accompaniment through status dashboards, with the aim of helping companies in mitigating the risks related to their suppliers. Besides, the system is highly interactive, providing complete information to clients – from a general overview to a detailed report for each partner (background check, compliance questionnaires, internal questionnaires, and evaluation of documents).
- Management vision through dashboards of the supply chain scenery for clients, as well as a detailed visualization with individualized reports for each third party;
- Definition of an action plan per level of risk and supplier;
- Automation and reduction of costs for the analysis’ process;
- Background check with an evaluation of the whole historic for each third party;
- Request, filling and evaluation of third-parties compliance and anticorruption questionnaires;
- Management and evaluation of third-parties documents in the platform;
- Map of risk divided by type of supplier.