An increasing reliance on third parties to deliver critical services means that vendor management, once the responsibility of procurement departments, has now become a strategic concern for many organisations. Ineffective due diligence practices can mean that early risk indicators are missed, resulting in serious consequences.
High profile incidents serve as a stark reminder that no risk management framework is complete unless it incorporates the risks an organisation is exposed to as a result of its relationship with key suppliers, contractors, distributors and other outsourced functions.
“83% percent of senior business leaders have low levels of confidence in third party risk monitoring and related management mechanisms.” – Deloitte, Extended enterprise risk management global survey, 2017
Carrying out good due diligence on third-party providers is essential. Regulators are actively focusing on vendor due diligence and management, requiring organisations to demonstrate the success of their vendor management programmes. However, tracking and monitoring contract commitments, service level agreements (SLAs) and policy requirements as well as review dates, risk assessments and periodic compliance checks for multiple providers can soon become nightmarish when relying on manual systems to do it. How can you report on your efforts effectively without an integrated system to make sense of it all?
CalQRisk, the online Governance, Risk Management & Compliance software, has a tailored solution that assists organisations with vendor management activities. It features Vendor Risk Assessment and Vendor Compliance Monitoring modules as well as others.
The system is user-friendly, easy to implement and is backed up by our first-class support team.