Monitor Risk in Real Time

IAOP Webinar Provides Third Party Management Life Cycle

In today’s information society where digital technologies immediately deliver real-time communications, monitoring for risk has become a continuous process that no longer needs to wait for monthly performance reviews or scorecards. What steps do customers need to evaluate risk at every stage of the sourcing lifecycle in the rapidly changing world of digital convergence?

IAOP’s Governance Chapter tackled this topic at a webinar on Enterprise Sourcing & Lifecycle Risk Management on October 22. For a playback of the Oct. 22 event, visit the Chapter web page. The association will continue to address the crucial issue of governance in the digital era at GOV19 on Nov. 13 in Chicago. To register, click here.

Last month’s Webinar featured experts with extensive experience on mitigating risks associated with third party vendor relationships: Jennifer Duest, Vice President, Corporate Insurance & Global Third-Party Risk Manager and Marcia Imer, Vice President, Associate Director of Finance Administration – Enterprise Sourcing, both with Wellington Management Group. They were joined by John Bree, Senior Vice President, Partner, Neo Group, and Atul Vashistha, Chairman and CEO, Neo Group, who moderated the discussion.

“The real time and continuous monitoring of risk is a new discipline that is extremely critical to the supply chain,” Vashistha says. “The third-party environment has changed significantly. With information accessible in real time, leadership can make decisions without waiting and governance becomes timelier and more effective than ever.”

Sourcing Life Cycle Five Steps

The experts addressed the following stages where steps can be taken to mitigate risks:

Planning – Identify business roles and determine requirements why it is important to engage a third party, vendor, or service provider
Due Diligence – Perform due diligence for all potential third parties commensurate with level of inherent risk
Contract and Onboarding – Specify appropriate terms and conditions in contracts with external third parties
Ongoing Monitoring – Monitor requirements commensurate with the level of risk and complexity of the third-party relationship
Renewal & Termination – Execute the renewal and termination process