Michael Parker, Director of Advisory and Consulting Services with government and tech experience in anti-bribery/anti-corruption and third-party risk, joins to discuss risk mitigation strategies. He outlines the need for board buy-in and a single source of truth. Topics include screening beyond FCPA, audit logs for defensibility, classifying and scoring vendors, and keeping platforms current with changing regulations.
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volunteer_activism ADVICE
Get Board Buy-In As A First Step
Do secure executive and board buy-in before launching a third-party risk program to ensure success and resources.
Michael Parker recommends framing the program as protecting business assets and creating a single source of truth for diligence.
insights INSIGHT
Single Source Of Truth Improves Defensibility
A robust platform provides efficiencies by replacing scattered emails and spreadsheets with a single source of truth.
Michael Parker says this enables a risk-based diligence program that increases defensibility and auditability for third-party decisions.
volunteer_activism ADVICE
Design Diligence To Prove You Mitigated Risk
Do design your diligence to increase both defensibility and auditability so you can show regulators you mitigated third-party risk.
Michael Parker emphasizes recording decisions, evidence and remediation steps to reduce potential penalties.
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Welcome to a special 5-part podcast series, sponsored by Diligent. Over this series we will consider a risk-based approach toe third-party risk management. Over this series I will visit with Michael Parker is the Director of Advisory and Consulting Services, Stephanie Font, Due Diligence Service expert; Kairi Isse, Managed Services Group Manager; Adam Bailey, Senior Vice President, Product Management and Alexander Cotoia, from the Volkov Law Group. In this Part 1, I visit with Michael Parker on the need for risk mitigation to bring a third-party into a relationship with your organization.
Parker has worked in the compliance arena for six years, learning from his experience in government and tech. For a compliance program to be successful, executive leadership and there must be Board of Director buy-in for oversight as well. The goal of a third-party risk management platform is to protect the assets of the business and create a single source of truth. Through such a mechanism, third parties can be can screened for anti-bribery, anti-corruption, human trafficking, and much more. The Board needs visibility in order to make decisions and an audit log to show activity and diligence if ever needed. It is critical for all compliance function to stay up to date with regulations and keeping their third party platform consistently updated.
Key Highlights
How can a risk-based approach, coupled with a single source of truth and robust platform, help protect business assets and comply with changing regulations?
What is the German Supply Chain Act and how can companies ensure compliance related to human trafficking and human slavery?
How can companies use visual analytics to gain insights into their risk-based approach, and show evidence of due diligence in the face of an audit?
Notable Quotes
"Companies don't do bad things, people do. And as people do, the regulatory landscape changes and it can change quickly. So keeping up with those changes is critical to protecting your assets and mitigating risk."
"We need to increase our defensibility and increase our auditability if somebody comes knocking, we can show and illustrate that we have done our due diligence to mitigate any sort of risk of doing business with this third party."
"Companies don't do bad things, people do."
"Put a platform in place that is robust lends itself to a number of different benefits."
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