A Guide To Holistic Third-Party Risk Assessment

While much of the world came to a stop in the face of the COVID-19 crisis, one thing that did not was corruption on a global scale. 

Did you know that almost 90% of Foreign Corrupt Practices Act (FCPA) enforcement actions in the past 40 or so years have been linked to third-party misconduct?

According to anti-corruption watchdog Transparency International, third parties and intermediaries, are “the single greatest are of bribery risks for companies”.

In an ever-changing globalised world with complex supply chains, third parties play an important key to the success of an organisation – but can also play a part in their downfall if not handled correctly.

As organisations of all sizes become increasingly reliant on third parties for their innovation and growth, they simply can’t afford to cut corners on their third-party risk management (TPRM).

Due to an acceleration in the digital transformation of businesses in the last few years, there has been a major push towards digital transactions and operations. This has amplified the need for compliance with Anti-Bribery and Anti-Corruption (ABAC) regulations across business in the world.

• 90% of FCPA enforcement actions in the past 40 or so years have been linked to third-party misconduct?
• 51% of the surveyed organisations were affected by at least one third-party risk related incident since the onset of COVID-19

In our latest insight-packed eBook, learn more about

• How the current approaches to third-party risk classification give an incomplete picture, rooted in a single point in time
• The benefits of factoring in data on historic and future risks, where organisations can achieve a 360-degree view of their third parties, for better decision-making and more strategic due diligence programs
• How the Ethixbase360 third-party risk indicator can offer this holistic view of third-party risk today

To restore operations to normalcy and keep businesses running smoothly, companies were forced to look towards third-party logistics, freight, brokerage, and other service providers.