Rebalancing Risk Management with a Third-Party Compliance Policy

How can compliance set the right precedents and processes for managing third-party risk?

Whatever your business or industry, working with third parties such as vendors and suppliers is essential to meet your strategic objectives. 

That said, doing business with third parties carries inherent risks that continue to intensify in the current business climate of increasing complexity, regulatory expansion, and cyber and fraud threats. 

To guard against these risks, mature organisations use a compliance policy for third parties. This policy provides standardised guidance for evaluating risk factors and determining whether the third party is an acceptable partner — one that will contribute to the business’s growth and operational efficiency without damaging its reputation or profitability.