Third Party Risk Management and Compliance Requirements for Automotive Companies

Automotive companies typically work with hundreds of thousands of third parties. To mitigate risks, including regulatory penalties and quality defects leading to damaging recalls, automotive companies need to establish a rigorous and inclusive onboarding process that can be tailored for the specific requirements of each type of third party business. At the same time, automotive companies need to comply with broad Anti-Bribery Anti-Corruption (ABAC) regulations, such as FCPA and the UK Bribery Act. Automotive companies need continuous visibility and tracking across vast, multi-tier supply chains, together with the ability to proactively identify issues and react rapidly to reduce risks.

The Aravo Risk and Compliance Solution for Automotive

The Aravo solution delivers the multi-tiered scalability that is required by the world’s largest automotive companies, including the leading North American automotive manufacturer using Aravo Enterprise to support its 700,000+ third party suppliers.  Automotive companies use the Aravo platform to support compliance with ABAC regulations such as the U.S. Foreign Corrupt Practices Act (FCPA), and to ensure that supply chains adhere to Conflict Minerals regulations such as Dodd-Frank Section 1502. Through the platform they can also ensure that there is third party compliance with standards specific to the auto industry such as ISO/TS 16949:2009. The platform’s adaptable model for attestations ensures that each third party receives the appropriate level of scrutiny and diligence depending on their level of risk.

Aravo Risk & Compliance Solution Benefits for Automotive Companies

  • Streamline and harmonize data and processes across the third party and supply network for improved transparency, flexibility and agility
  • Eliminate risk silos and deliver a centralized ‘version of the truth’ for the extended enterprise
  • Increase supplier transparency through Tier 1, 2 and beyond
  • Reduce complexity and third party administration costs
  • Expand third party networks and enter into new markets with confidence
  • Accelerate time to market
  • Reduce brand risk
  • Improve oversight with an always accessible audit trail
  • Expand to new use-cases as you harness the power of the flexible Aravo Enterprise platform

Regulations and Standards that impact the Automotive industry

U.S. Foreign Corrupt Practices Act (FCPA)

Forbids bribing foreign officials and mandates transparent accounting practices.

UK Bribery Act

Covers British criminal laws related to bribery and establishes penalties including imprisonment, fines, and confiscation of property.

Dodd-Frank Section 1502

Defines restrictions on the mining, transporting and commerce of Conflict Minerals, amongst many other regulations.

ISO 14001:2015

Sets out the criteria for an environmental management system applicable to any industry.

ISO/TS 16949:2009

Defines quality management system requirements for automotive products.

ISO 9001:2015

Establishes an international standard for quality management systems.

UK Health & Safety at Work Act of 1974

Provides for securing the health, safety and welfare of persons at work.