Are you at risk from supplier or trading partner regulatory compliance failures? Can you ensure that your suppliers have valid insurance certificates or that your channel partners are FCPA compliant?
It’s no longer enough to ensure that your company is meeting its internal regulatory compliance requirements alone. Unsafe cars, toys contaminated by lead, pet food containing dangerous fillers, and medications formulated with treacherous levels of key ingredients are all tragic stories. What’s common to them is that the brands of the companies affected were not damaged by their own overt acts, but by those of suppliers...suppliers that did not adhere to regulations, standards, and codes of conduct.
And it isn’t just about product safety and sustainability.
- The US Foreign Corrupt Practices Act (FCPA) implements rules and penalties regarding the use of bribes in the conduct of business
- Dodd-Frank legislation requires the tracking and reporting of Conflict Minerals usage in all products
- The list of regulated/mandated activities and standards continues to grow.
How do you mitigate this risk of regulatory compliance across international markets while managing compliance costs? By implementing systems and controls to gather trading partner credentials (some as simple as COI, W8’s, self-cert affidavits, etc.), monitor internal and external trading activities for compliance, and proactively identify partners and suppliers that are non-compliant. The costs may seem considerable, but the penalties in terms of brand erosion, fines, and prison sentences are much worse.
Aravo can help
Aravo has helped many companies across industries ensure global regulatory compliance by providing an automated, flexible, scalable SLM solution that provides a single, centralized, 360 degree view of supplier credentials and compliance across business units and geographies.
With Aravo you can:
- Protect your brand by consistently managing & reporting compliance policies
- Reduce the risk of fines, penalties, product recalls, and collateral brand damage
- Improve efficiency by managing the lifecycle of compliance-related information
- Improve compliance by tracking compliance risks and automating the tedious process of identifying compliance issues
- Reduce the cost of compliance with standardized and consolidated processes for collecting and maintaining supplier-provided credentials in a centralized web repository
- Create a single source of truth for all supplier credentials - from point of supplier on-boarding through audit
- Assist suppliers in adhering to compliance objectives
For more information, please click on one of the choices in the Learn More box to the right.
"The types of risk to which companies are exposed, as well as their severity, are growing. Companies are increasingly concerned about the spectrum of risksfrom supply chain to operations to regulation to reputation and financial fraud and failure."
Report on the Accenture 2011 Global Risk Management Study