Third party risk management

Creating a process to oversee your third party relationships can help you avoid damages to your bottom line and reputation

 

Benefit by building solid relationships

In a business landscape loaded with potential pitfalls like cyber threats, corruption, data loss and natural disasters that result in supply chain interruption, making sure your partners are following appropriate procedures is vital and will enable you to avoid risks and reputation damage.

 

 

What you need to know

The responsibility of managing the risk of your third party relationships falls on you, so to protect your business from issues associated with profitability, reputation, regulation and even litigation, it’s important to establish processes that will allow you to oversee these issues.


Regulators have stepped up their standards regarding how companies protect themselves against third party issues, so this area is becoming a more important part of your risk management plan.

 

 

 

“In today's market, you're relying more heavily on suppliers and service providers to help you manage your operations. And to avoid a third party breach or incident, you need to have a process in place that will oversee how you're managing your ecosystem.”

                                                                          Tony Pedari, Risk Assurance Partner at PwC Canada

 

 

 

 

Enhancing the third party risk management model

Inventory assessment

How do you get a complete picture of all your dependencies? Developing a process that lets you improve your ability to identify and inventory all the third parties you rely on will help you identify not just who you’re paying, but everyone else you’re dealing with.

 

Reporting structure

How do you determine how well your third party vendors are performing? By putting mechanisms in place to ask your vendors and partners the right questions and create a reporting structure, you’ll be able to address gaps and provide more assurance that your company isn’t at risk.

 

Monitoring services

What's the best way for you to manage third party relationships on an ongoing basis? Designing a service to keep you abreast of the activities of your third party relationships will give you real-time updates on your vendors and partners through a variety of methods, including data scans, social media scans and news articles.

 

Third parties are essential to your strategic and tactical decisions, so you need to examine your sourcing arrangements throughout the sourcing lifecycle.

 

Our third party risk management practice

We’ve designed our third party risk management service offerings to help you institute the due diligence procedures you need to make sure you can deal safely and responsibly with third parties.

 

 

Related insights

 

Contact us

Tony Pedari

CPA, CA, CISA, CRISC Partner, Toronto

Tel: +1 416 941 8226

Email

Jennifer Johnson

Partner and National Leader, Risk Assurance Services, Toronto

Tel: +1 416 947 8966

Email