Third Party Risk Management

Proactively monitor and manage risk across complex third party networks, including suppliers, distributors, franchises and partners. Automate and streamline third party governance workflows, eliminating silos and delivering a centralized ‘version of the truth’ for the enterprise.

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The Backdrop

The complexity of third party ecosystems and the importance of corporate reputation to share-holder value, make third party risk management a critical aspect of any governance, risk and compliance program.

Complex, dynamic and highly integrated third party networks are a hallmark of today’s global business environment. Working with third parties brings significant opportunity and scale, but also substantial strategic, operational, financial, compliance and reputational risks. The types of risks associated with third parties are diverse – corruption, product defects, data security breaches, supply chain disruption, environmental crime, IP theft and unfair, deceptive and abusive practices, to name a few. Your third party’s risk exposure is your risk exposure and regulators have made it clear that you can’t outsource liability.

This is compounded for Global 2000 organizations as the number of third parties and suppliers that they work with can extend into the tens of thousands to many hundreds of thousands, and involve a web of complex relationships. Some of the most costly failures in history, including Deepwater Horizon which is estimated to have cost BP $20 billion, can be tracked back to third party failures. Deloitte have reported that third party failure could cause shareholder losses of up to 10 times the regulatory fine.

Regulatory Drivers

With diverse risks, come a diverse set of regulations that seek better governance and control of third party relationships and the conduct associated with them. These range from anti-bribery and corruption, to anti-slavery to data privacy and protection. Regulatory drivers include: The Foreign Corrupt Practices Act (FCPA); The UK Bribery Act; United Nations Convention against Corruption; OECD Anti-Bribery Convention; The UK Modern Slavery Act; The Federal Acquisition Register’s anti-trafficking provisions; California Transparency in Supply Chain Act; Dodd-Frank’s Conflict Minerals provisions; OCC Regulations (2013-29), Health Insurance Portability and Accountability Act (HIPAA).

How We Help

As the Third Party Management market pioneer, Aravo has defined best practices for Third Party Management for over fifteen years. Working with companies with the most complex and globally dispersed third party networks in the world, we have assembled impressive domain expertise on what works, and are proven to scale. With Aravo’s Third Party Risk application you can manage the entire life-cycle of third party risk across the enterprise including: planning, due diligence & third-party selection, contract negotiation, ongoing monitoring, and terminations.

End-to-End Enterprise Capabilities Include

Onboarding

Ensures that the required third party process, including due diligence, risk management, compliance, sourcing, procurement and performance are delivered in an automated, centralized and consistent fashion that can be easily tracked and audited.

Third Party Portal / Registration

Automates and standardizes the Registration process to ensure that all required information is gathered and kept up-to-date on an ongoing basis.

Qualification

Ensures that all Third Parties and trading partners meet or exceed regulatory standards and those standards established by your organization

Master Data Management (MDM)

Provides a single source of truth for third party and supplier information, providing an enterprise-wide view of third parties. Relational data model allows many-to-one relationships between Aravo and third party records in other enterprise systems.

Due-Diligence

Automate initial and ongoing due diligence with a systematic and consistent approach. Facilitate credit checks, beneficial ownership checks, sanctions and watch-list screening, information security audits, and the collection of appropriate documentation and certification.

Contract Management

Store and manage contracts with workflow-driven reminders, reviews and approvals.

Risk scoring, assessments and management

Automatically and continually score and assess the risks of your third parties. Integrate risk data from past events, third party information and screening processes. Manage and control those risks through contract management and mitigation programs

Regulatory Compliance

Manage both corporate and industry-specific regulatory compliance, including anti-bribery, anti-corruption, FCPA, Anti-Slavery, Conflict Minerals, and Trade Compliance programs. Comply with CFPB and OCC in the U.S. and FCA in the U.K. for financial services.

Compliance Management

Ensure third parties are adhering to compliance programs for code of conduct, information security, environmental, health and safety standards, and responsible sourcing. Use the platform for training and Learning Management System (LMS) requirements.

Monitoring and performance review

Leverage powerful dashboards, reports and drill-down capabilities that providing continuous monitoring and flag risk and performance issues.

Audit

Evidence compliance with always-ready audit.