Third Party Process & Risk Management
Aruvio provides for the complete third Party management lifecycle for Vendor, Supplier, Supply Chain, Partner, Channel, and Customer Process & Risk Management. Aruvio’s value is in its simplicity with 3rd party management capabilities; automation, workflow, configuration, and reporting.
Because of increasing regulatory and security concerns, most organizations seeking a third party management system require that the system seamlessly complement their existing operational processes without requiring a parallel management structure. Having a separate, parallel systems and processes is a huge administrative and bureaucratic overhead for most organizations.
- Manage the end-to-end third party lifecycle from contracting, due diligence, onboarding, risk management, auditing, and off-boarding.
- Create workflow for managing new 3rd parties that includes both internal and external questionnaires to evaluate and score risk.
- Includes the ability to red flag identification from answers in questionnaire for internal completion, external compliance due-diligence databases, attestations, escalation, training, and remediation workflow.
- Also, enables full auditing, dashboards, and reporting of questionnaires and escalation workflows.
Sample 3rd Party Process Lifecycle – Most Organizations Extend with Additional Custom Steps
- Procurement Registration
- Initial Risk Assessment
- Due Diligence
- Publishing Policies & Trainings for 3rd parties
- Performance Auditing
- Periodic Risk Rating and Impact Assessment
- Remediation & Issue Escalation
The key capabilities required for most 3rd party management systems is focused on managing the following:
Registration, Requirements, Onboarding & Training – Define the process to initiate the exchange of information and the processing to approve and contractually connect the organizations. Also, kicks off the process of risk evaluation and coordination.
- Automate the end-to-end third party risk management lifecycle process management with automated compliance and risk management assessments during the on-boarding process
- Organize and archive all contracts, with a particular view to those that impact your compliance program.
- Distribute policies, SOPs, and training materials to all your 3rd parties, just like employees, with the ability to manage attestations, identifying compliance gaps, managing remediation projects to ensure training, acceptance, & adoption.
Relationship & Rationalization – Centralize the management of relationships with all third parties, Complex organizations require multiple points of contact and the ability to coordinate communications, objectives, and activities is critical to relationship success.
- Capture key relationship due diligence, selection, contracting, and onboarding documentation and critical information
- Provide proactive communication with notifications, reminders, task delegation, feedback, and configurable escalation workflows
- Integrate both enterprise and external systems to import information on 3rd parties into a central repository as a foundation for risk and performance evaluation.
Risk Assessment, Scoring & Remediation – A key function of 3rd party management is the identification of poor trending that indicates a problem for the business from a 3rd party; whether poor relationship performance, lack of security of critical information, or poor decision making that can put the business at risk for failure, noncompliance, or liability. The flip side is the identification of poor performance from the business in support of the relationship that can jeopardize the relationship or put the business at risk for non-performance or non-compliance liability with the 3rd party or regulators.
- Assess 3rd party risk using various assessment questions based on standard, periodic, or situational workflow.
- Streamline and standardize the process of creating, distributing, and managing 3rd party risk surveys and self-assessments
- Create weighted risk scoring & categorization based on risk assessments, criticality, third-party validation databases, and other factors
- Qualify 3rd parties based on self-assessment scores detailed vendor risk data, including risk severity, impact, consequences, mitigating plans, issues and user defined criteria- category, region, risk rating, status or timeframe
- Track and address areas of non-compliance identified in the 3rd party assessment process to assign investigation and remediation activities, as well as, workflows to automate reviews and approvals
Risk Auditing & Reporting –Leverage third party auditing into your overall risk management framework
External regulators and internal auditors looking for end-to-end, cross-functional compliance & SOP risks identified within the relationships with business partners, providers and their employees; proactively identifying potential risks, verifying that, monitoring for changes that might create new risks or compliance gaps, and managing the investigation and remediation of incidents and issues. The key value of managing internal and external business processes in a cohesive environment is the ability to provide harmonized reporting. The objective is to see the end-to-end impact in a way that is transparent, comprehensive, and measurable.
- Automates data collection, analysis and reporting along with a fully compliant auditing trail to provide risk management summarization and supporting documentation for executive management, board-level oversight, and external auditors.
- Assemble compliance and risk assessments into comprehensive risk profiles for each business partner to identify outliers or develop sampling programs to target your key business partners for proactive monitoring and assessments.