Identify third party risk at early stage

Associating with a third party without conducting the due diligence can expose an organization to risk of fraud, litigation, reputational loss, financial damage and, in some cases, termination of business. Third party risk assessment is becoming a very important tool for the companies operating in different geographies.

Multinational companies doing business in India are covered by various anti-bribery provisions.

Under the FCPA, a company can be liable for the activities of its agents, consultants, advisers, joint venture partners, and other relevant third parties. As recent cases have demonstrated, agents are one of the most common channels for illegal payments. Where an Agent acting on behalf of or as the representative of a company pays a bribe to a government official, the company may be held responsible. Therefore, it is important that a policy on selection, appointment, monitoring, and audit of Agents is included as part of an effective compliance program

FCPA Due Diligence

Some organisations conduct FCPA due diligence in order to mitigate the risk that a vendors or clients will engage in an illegal act like bribery. Others go further by helping their vendors or clients to develop their own compliance programs. This, in turn, reduces the risk of non-compliance for the organisation itself, thus, strengthening the management of channel risk.

Some organisations view FCPA due diligence as a cost of compliance. However, many companies are realising that these programs add substantial value to their business including:

  • Reduction in cost of investigations for alleged illegal conduct.
  • Increased margins and better pricing control
  • Reduction in exposure to scandal from illegal or other unethical or unpalatable activity
  • Increased brand value as an effect of a stronger channel
  • Reduction in write-offs and also in the returned goods
  • Increased protection of your company’s reputation
  • Reduction in parallel imports and counterfeit production
  • Increased safety factor to customers. Additionally, embedding channel integrity into the sales and product quality process
  • Increased assurance that your channel partners actually exist as genuine physical entities, with the ability and integrity to protect and promote the property and reputation of your company’s products and brands
Moreover, as regulators are focusing on enhanced due diligence on customers and third parties, it has become imperative for organizations to demonstrate a comprehensive and risk-based Know Your Customer (KYC) or Know Your Vendor (KYV) process to avoid any legal/ regulatory implications.

Select and manage the most reliable suppliers to protect your business against risk.

Prevent business disruption, and meet diversity, green, and compliance requirements.

Stay on top of all the factors that impact a supplier’s ability to deliver – financial, environmental, and political

Third Party Risk Analysis

Portfolio analysis is the cost-effective service offering from the Riskpro Technology team. This service is useful for the multinational corporations with a bigger vendor and partner base.

Riskpro’s tool analyse multiple vendors at once. And it performs the vendor risk analysis based on different risk parameters. This tool not only identifies the vendors or partners, who are high risk but also provide the complete broader overview of the portfolio.

Our portfolio analysis tool helps in identifying information about vendor. It assess the portfolio of the clients, resellers, channel partners or vendors. And also assess risk associated with the target that can be potentially damaging to an organization.

The tool generates a specific risk score. It helps the companies to compare the vendors on the same parameters. Moreover, known violations of FCPA or UKBA are the important considerations of these risk assessment efforts.