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
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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