Third-Party Risk Management Software
Global enterprises rely heavily on third parties to support and enhance business operations. While strategic partnerships with external parties can produce tremendous business benefits, they can also introduce significant risk. The term “third party” is often used in reference to big jobs—such as outsourced labor, data processing, or manufacturing, but the associated risks apply to every contractual relationship, regardless the size. Therefore, when evaluating, implementing, and expanding third-party relationships, it is critical to assess the tradeoff between risk and benefit.
Understand and Manage Third-Party Risk
When dealing with third parties, whether they are vendors, partners, or even clients, businesses hand over controls normally managed internally to someone outside the organization. The global nature of today’s business often means third parties may be subject to different political systems, regulations, labor laws, and quality control expectations. It’s vital to understand that third-party risk management is a constantly changing environment, and organizations need to implement a proactive approach for managing third-party risks. A proactive approach to third-party due diligence involves evaluation throughout the course of the entire relationship—from selection, to periodic assessment, to updating contracts and termination.
Organize Vendors, Clients, and Partners in a Central Cloud Repository
Aruvio provides a central storage repository to contain all contracts, evaluations, processes, legislation, and requirements involved in managing third-party risk. With Aruvio, organizations categorize vendor and client risk profiles, perform periodic assessments, and establish benchmarks.
Communicate Vendor/Client Policy and Manage Contracts
Aruvio’s in-cloud approach supplies a highly effective framework to manage all third parties with end-to-end vendor onboarding approval workflow spanning cross-functional teams such as procurement, IT risk, legal, and finance. Third-party relationships may also include their relationships with their service providers and suppliers. Aruvio provides the ability to delegate assessments to multiple users and third parties within the vendor’s own network to reduce manual reconciliation of data.
Automate Third-Party Risk and Compliance Assessment
Aruvio automates the assessment of third-party vendor and client risk and compliance based on a consistent framework such as Standard Information Gathering (SIG) and Agreed Upon Procedures (AUP) standards by Shared Assessment Frameworks or customize your own. Businesses can conduct both periodic and event-triggered third-party risk assessment to ensure oversight does not lead to unnecessary risk exposure. The automation of notifications and alerts based around specific business conditions, key milestones, & pending and past-due assessments removes time and cost associated with managing third parties.
Gain Total Visibility into All Third-Party Risks
Aruvio provides complete interactive visibility into third-party vendor, client, and partner activities ranked by risk factors such as regulation, contract value, corruption potential, and financial risk for a complete profile to incorporate into business continuity planning.
Generate Reports and Include in Business Planning
Aruvio provides a powerful audit trail of assessments, risk events, and the corresponding remedial activity, and real-time risk data to advise senior executives and incorporate into business continuity planning.
*Adapted from Warren’s article, “Closing the Gaps in Third-party Risk Management,” Internal Auditor magazine, February 2014