Extended Enterprise Risk Management


Extended Enterprise Risk Management (EERM)

Maximize revenue, mitigate risks, & strengthen relationships

In a globalized business environment, no company is an island. The ecosystem of a typical company comprises an exceedingly large number of entities with which the company does business, including customers, partners, agents, affiliates, vendors and service providers. Taken together, these third parties constitute what we have termed “the extended enterprise.”

We offer:

Business partner assurance

We can assist you in obtaining assurance over your third party partners’ compliance with agreed contractual terms. On the revenue side, this involves providing you comfort that you are receiving the revenues (e.g. royalties, licensee fees, revenue/profit share) you are entitled to and that your third-party partners are complying with brand/marketing obligations. On the supply side, this involves assessing that third-party suppliers have charged you accurately for services provided as well as meeting service/product quality requirements. 

Our breadth of experience covers all industries and all types of third-party relationships: outsourced providers, advertising agencies, licensees, materials suppliers, etc. We can also support you in assessing your adherence to contractual terms with your customers and licensors. We can provide recommendations to address any gaps in your current processes and controls.

Software asset management

Software is prevalent in almost all business processes, but the licensing and management of these vital assets is rarely completely understood and often poorly managed. The organization may not be aware of its weakness until it is hit with a software vendor audit.

We can help by independently assessing your partners’ compliance to contractual terms by performing reviews of their third parties. With respect to outsourcing, supply arrangements and joint ventures, we can establish whether third parties are compliant and whether they are delivering expected benefits. In the distribution channel (rebates, special pricing, discounts and other complexities), we can assist with reducing overcharges from third parties and implement appropriate controls. In licensing and royalty-bearing arrangements, certainty over the accuracy of reporting is crucial; we have the tools and knowledge to perform reviews that provide direct monetary results and add further value.

Third-party governance and risk management

Our Contract Advisory professionals can assist you in developing a bespoke Third-Party Governance and Risk Management (TPGRM) framework to enable your organization to identify, mitigate and govern third-party risk. We can provide guidance on specific elements of an existing TPGRM framework (i.e. process, technology, governance, delivery model) or by providing a program and team to work with key stakeholders in your organization to establish a new framework.

Our experienced team can also provide support in the areas of Contract Discovery, Key Contract Clause Extraction, undertaking Contract Risk Assessments and performing assessments of third-party management processes.

Extended enterprise compliance and recovery 

We work with organizations to identify and manage risks resulting from extended business relationships to enhance value, drive cost savings, manage corporate reputation and audit/legal exposure, and manage compliance – both their own and on the part of their business partners.

Your challenge

In a globalized business environment, no company is an island. The ecosystem of a typical company comprises an exceedingly large number of entities with which the company does business, including customers, partners, agents, affiliates, vendors, and service providers. Taken together, these third parties have the possibility of posing a multitude of risks to your business.

Our solution

Deloitte member firms’ experienced teams work with clients to develop governance frameworks that effectively identify and manage all forms of third-party risks, looking at both process and technology solutions to deliver value and meet contractual obligations.

Why Deloitte?

Our experienced risk leaders can help you better understand your risks and take a more strategic approach to third-party risk management. We can provide end-to-end services to help you establish an EERM program or move your existing third-party risk management practices to the next level.

Extended enterprise risk management survey 2019

Deloitte’s fourth annual extended enterprise risk management (EERM) survey shows there is renewed focus on maturing EERM practices within most organizations. This appears to be driven by a recognition of underinvestment in EERM coupled with mistrust of the wider uncertain economic environment.

Driving additional value from your supplier relationships

Description - Your spend with suppliers is a significant proportion of your cost base. Identifying just 1% of errors or over-payments could contribute significantly to your bottom line.

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Pavel Šiška

Pavel Šiška

Managing Partner

Pavel is the Partner in Charge of the Consulting function of Deloitte Czech Republic. He has performed this leadership role since 2013. His experience includes focusing on business–IT alignment, analy... More