Aerospace & Defense

Third Party Risk Management and Compliance Requirements for Aerospace & Defense

The compliance challenges for Aerospace & Defense companies are broad and complex. The breadth derives from the sheer number and variety of third parties that Aerospace & Defense companies typically work with – third parties in areas as diverse as ergonomics, hydraulics, machining, and software. The complexity is associated with the volume of regulations companies and their third parties must comply with. All third parties must also have proper certifications and insurance, and third-party products must be properly classified. In many cases, third parties will also need to be SSAE 70 Type II-certified, attesting that their operations follow best practices for security.

The Aravo Risk and Compliance Solution for Aerospace & Defense

Aravo developed its compliance solution for the Aerospace & Defense industry while working with the prime contractors for the UK Ministry of Defence. Applicable for international markets, the Aravo Enterprise solution for Aerospace & Defense features a standardized supplier compliance scheme, including questionnaires, risk models and compliance processes for qualifying third parties. The solution is flexible enough to support multi-buyer qualification schemes. Major vendors in the Aerospace & Defense market have agreed to the solution’s common compliance criteria.

Aravo Risk & Compliance Solution Benefits for Aerospace & Defense

  • Leverage established multi-buyer, multi-third party qualification and best practice compliance programs
  • Eliminate risk silos and deliver a centralized ‘version of the truth’ for the extended enterprise
  • Streamline and harmonize data and processes across the third party and supplier network for improved transparency, flexibility and agility
  • Increase third party transparency through Tier 1, 2 and beyond
  • Reduce complexity and third party administration costs
  • Expand third party and supply 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 Aerospace & Defense 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.

Customs-Trade Partnership Against Terrorism (CTAP)

Establishes a voluntary program designed to protect supply chains from aiding terrorism.

International Traffic in Arms Regulations (ITAR)

Controls the export and import of defense-related articles and services on the United States Munitions List.

AICPA Statements on Standards for Attestation Engagements (SSAE) No. 16

Defines controls at organizations that provide reporting services to users.

UK Health & Safety at Work Act of 1974

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