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Third-Party Due Diligence Third-Party Due Diligence

Third-Party Due Diligence - PowerPoint Presentation

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Uploaded On 2016-03-22

Third-Party Due Diligence - PPT Presentation

Integrating Inhouse Technology and Outside Services Providers Agenda Brief Introduction of Speakers Evolving ThirdParty Risk Management Standards Engaging ThirdParty Providers QampA Todays Evolving Standards ID: 265237

work risk diligence due risk work due diligence sources house party records engaging level providers agent public human scope technology thecompliancetable database

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Presentation Transcript

Slide1

Third-Party Due Diligence

Integrating In-house Technology and Outside Services ProvidersSlide2

Agenda

Brief Introduction of Speakers

Evolving Third-Party Risk Management Standards

Engaging Third-Party Providers

Q&ASlide3

Today’s Evolving Standards

Companies are integrating basic to advanced technology platforms to monitor third-party relationships

Creates a repository of key, auditable data

Maintains approval limits and accountability

Back-end risk methodology to assign risk ratings

Contract database that maintains integrity of document versions showing of risk analysis

Integration of guidance when to engage an outside due diligence providerSlide4

Sample Technology WorkflowSlide5

Engaging Third-Party Providers

Providers:

Build upon work already completed by in-house systems to avoid inefficient duplication of work

Enhance in-house due diligence by extending

its reach to hard-to-find records and human intelligence

Communicate findings clearly with a defined scope of work to help you internalize our workSlide6

Cost-Effective Scope of Work

Level 1: Public Records / Database Research

Suitable for low- to medium-level risk targets

Verification of bona fides disclosed in the Questionnaire

Thorough review of publicly available documents such as corporate records, court records and local media

Tailored scope to suit in-house pricing needs and avoid duplicative work

Level 2: Human Source Inquiries

Suitable for medium- to high-risk targets

Ongoing Role

In-house teams need to refresh due diligence periodically

Costs can be kept down by going to the same outside provider every two years rather than engaging someone new each timeSlide7

When Intelligence Matters

Significant questions are unanswered in the public. Examples:

Is the ongoing investigation/litigation involving our potential agent likely to lead to any risk-relevant actions or sanctions?

A tabloid described our agent as a corrupt arms dealer, but he says that it’s not true and he’s never been convicted of wrongdoing.

Is the John Smith cited on the OFAC list the same John Smith we’re engaging? It’s a common name and there’s limited public information.

Is our agent going to fall out of favor with when the government changes after the election, and what would that mean for our business?Slide8

Human Sources

Thorough Level 2 due diligence includes speaking with knowledgeable sources from three broad angles:

Government

sources with knowledge of past or current investigations and official actions

Industry

sources that are familiar with subject’s reputation within the field

Professional

sources such as business consultants, lawyers and journalists that have researched the subject before or can provide broader contextSlide9

Questions?

Michael Harrington

Greg Shultz, Managing Director

www.thecompliancetable.com

gshultz@thecompliancetable.com

mintzgroup.com

mharrington@mintzgroup.com