Now more than ever, businesses rely on third parties to achieve a wide range of business objectives. Rather than pay for infrastructure and full-time employees, businesses ranging from struggling startups to established firms now outsource part of their workload. These solutions obviate the need for many capital investments, freeing cash and resources for other pursuits. They have also stoked demand for trust and transparency, which are becoming weightier concerns. Although working with third parties is often a fast, affordable way to boost sales, cut costs and meet your goals, these alliances can also expose your company to unknowns, and unknowns mean risk.
If your business engages in third-party relationships, appropriate and responsible due diligence, accurate risk assessments and business partner classifications standards are essential. So, too, are reliable approval and contracting processes. Should you encounter a snare, established protocols for handling your response and working toward remediation will also prove invaluable. PwC can help. We affirm whether external vendors qualify as sound partners, and apply a compliance framework that focuses on the risks inherent to working with them. Prepare to get the most from your third-party relationships.