For many organizations, the global third-party ecosystem (known as the extended enterprise) has grown larger and more complex. It’s also become an important source of strategic advantage. But managing this extended enterprise has become increasingly challenging. One solution: extended enterprise risk management, which can help organizations better anticipate and manage exposures associated with third-parties across the full range of operations.
Disruptive events have led to business continuity issues, reputational damage, and regulatory enforcement actions and penalties. Third-party risk (as well as fourth- or fifth-party risk deeper in the extended enterprise ecosystem) may have been considered isolated risks to specific areas of the business. But in some “headline” news stories involving damaged corporate reputations, the culprit often wasn’t the organization itself but a third-party provider.
Learning to recognize, anticipate, and manage extended enterprise risk can help dramatically reduce exposure. It can also lead to business improvements that can drive value creation.
How can you accelerate your EERM program? And how can EERM help your organization improve financial performance, reduce regulator and stakeholder scrutiny, enhance brand and reputation, and optimize margins and cost control? Continue to read below to find out how risk powers performance.
Third-party Governance & Risk Management Survey
Extended enterprise risk management: Understanding third-party risk
Risk Angle on Third-party risk
Strategic Risk: A cornerstone of risk transformation