Third parties: A risky business
Your third-party relationships may expose you to serious risk and compliance issues with bribery and corruption at the top of the list. Watch this video to learn why unethical third parties can compromise your company mission and how to reduce your risk using third-party integrity due diligence technology.
So in my entire career I saw that when there is a fraud, when there is a case of corruption happening, the way they take the money out of the company to be able to steal it or to pay a bribe is through third parties. The third party, in general, doesn't have the level of compliance that we have in our company or that our clients has in their companies. In general, they are more flexible. Flexible, in a way, with compliance when it comes to corruption lost.
So yeah, from an anti-bribery and a corruption standpoint, third parties are probably the riskiest area. So it's basically somebody you're doing business with and you're ultimately responsible. If they pay a bribe to a foreign government official, you're responsible for that.
And so when you look at all of those different kind of risks, you can see how an unethical third party, one who is overly pushed or pressured for profit or for some other reason, can very quickly compromise the mission of a company that's otherwise acting ethically.
So what you need to do to mitigate that is perform due diligence on your third parties. That was the answer 10 years ago, due diligence one point O. It was a costly aspect to do that because some of our clients, they may deal with 30000 vendors, right? In the past you'd perform due diligence on a lot of those vendors and It would be a significant cost to the compliance organization. This is where technology now has caught up with that and now we're able to aggregate all publicly available information on that third party and provide it back to the company. We can do it for all their third parties. So instead of saying we're going to sort of speculate on what third parties we're going to hit, the tool we have now, enables a company to do is within 10 minutes, identify the third party, understand the adverse press, the litigation support, sanctions list, and then also distill that down into basically one page, who the company, and do it at a price that's fair. That's probably one of the cheapest out there in the market place. What it does for the client is it says, "I'm managing my risk, I'm watching my cost, and I'm providing valuable information back to the business."