Third-party Risk: Transforming Compliance into a Winning Edge
In an increasingly globalized and interconnected business landscape, organizations rely on third-party vendors, suppliers, and partners to achieve their strategic objectives.
This reliance exposes companies to an array of risks, making third-party risk management a top priority. As regulators worldwide tighten compliance requirements, companies must ensure their partners and suppliers adhere to relevant laws and regulations and operate with the same level of ethics that they do.
Firstly, what are some of the most common third-party risks in South Africa?
- Compliance risk: Non-compliance with South African regulations like POPIA and B-BBEE exposes organizations to legal penalties and reputational damage.
- Bribery and corruption risk: Engaging with vendors involved in corrupt practices can lead to legal consequences and reputational harm.
- Cybersecurity risk: Inadequate security measures from third-party vendors may put sensitive data at risk and expose organizations to breaches.
- Supply chain risk: Complex economic landscape, currency fluctuations, and political instability in South Africa contribute to supply chain disruptions.
- Labor and employment risk: Labor disputes, strikes, and non-compliance with labor laws can impact vendor performance and expose organizations to legal and reputational risks.
Now let’s explore how due diligence screening technology and managed services can help businesses streamline their third-party compliance processes and enhance their market position.
Streamlining due diligence with advanced screening technology
The first step to transforming third-party compliance into a competitive advantage is to streamline the due diligence process. Advanced screening technology like our RiskSecure third-party screening solution can help organizations achieve this by:
- Scanning multiple sources such as internal restricted lists, Global Watchlists, and Adverse media news articles when the third party is onboarded, to identify potential red flags associated with third-party vendors.
- Conducting ongoing monitoring to ensure that vendors remain compliant throughout the relationship.
- Utilizing artificial intelligence and machine learning to improve the accuracy and efficiency of the screening process.
By automating these tasks, organizations can reduce the time and resources required for due diligence while enhancing the quality of their risk assessments.
Enhancing risk management through managed services
Managed services providers specializing in third-party risk management can offer invaluable expertise and support to businesses. These providers can help organizations develop and implement comprehensive risk management solutions, integrated with their own third-party management platform and requirements. By leveraging managed services, companies can benefit from:
- Access to experienced compliance professionals who can provide guidance on best practices and regulatory requirements.
- Customized risk screening methodologies that align with the organization’s compliance workflows, risk appetite, and strategic objectives.
- Ongoing support to address emerging risks and adapt to changes in the regulatory landscape.
Working with a managed services provider can ensure that organizations stay ahead of compliance requirements, giving them a competitive edge in the marketplace.
Showcasing compliance as a market differentiator
Organizations that excel in third-party compliance can leverage their achievements to stand out in the market. This involves:
- Communicating their commitment to compliance and ethical business practices through marketing materials and public disclosures.
- Highlighting the value and effectiveness of their compliance program to customers and partners.
- Building a reputation for trustworthiness and reliability, which can lead to increased customer loyalty and long-term revenue growth.
By showcasing their compliance efforts, businesses can differentiate themselves from competitors and attract customers seeking reliable, responsible partners.
How We Help
With NGA’s expertise, you can proactively detect, evaluate, and mitigate third-party risks within your supply chain and distribution network.
By doing so, your company will fortify itself against potential reputational harm and financial setbacks. Through our solution-driven methodology, we offer a 360-degree analysis of third-party risks, equipping you with a deeper understanding and enabling quicker responses compared to your competitors.
RiskSecure Third-party screening and due diligence features at a glance:
- Integrated PEP and Global Sanctions screening
- Web interface to manage ongoing monitoring and risk alerts
- Adverse media screening: 20 Adverse categories from more than 200 countries
- Country association risk
- Detect third-party risk through their associations
- Employee risk screening
- Initial and ongoing Low/Medium/High-risk assessments
- Seamlessly integrate our APIs into your existing compliance tools and workflows
Contact us for more information on our third-party screening technology and managed services.