Presentation is loading. Please wait.

Presentation is loading. Please wait.

Third-Party Due Diligence Integrating In-house Technology and Outside Services Providers.

Similar presentations


Presentation on theme: "Third-Party Due Diligence Integrating In-house Technology and Outside Services Providers."— Presentation transcript:

1 Third-Party Due Diligence Integrating In-house Technology and Outside Services Providers

2 Agenda  Brief Introduction of Speakers  Evolving Third-Party Risk Management Standards  Engaging Third-Party Providers  Q&A

3 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 provider

4 Sample Technology Workflow

5 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 work

6 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 time

7 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?

8 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 context

9 Questions? Michael HarringtonGreg Shultz, Managing Director www.thecompliancetable.com gshultz@thecompliancetable.com mintzgroup.com mharrington@mintzgroup.com


Download ppt "Third-Party Due Diligence Integrating In-house Technology and Outside Services Providers."

Similar presentations


Ads by Google