Comprehensive third party or supplier risk management screening to avoid problems

Global business operations involve dealing with a plethora of partners, vendors, and other business partners. As a result, the company is at risk from regulatory, financial, strategic and reputational threats due to a very complex network of third parties. Thus, it is necessary to get important business intelligence on the third parties to ward off such threats. This is called third partyrisk management.

The Lexis Nexis Research solutions offer effective tools to get complete information about third-party entities and manage them easily. Some of the tools have been discussed here.

Diligence spotter

LexisNexis HongKong diligence spotter searches international sources for Company information databases or individual information. The third parties are screened against Interpol notices, PEPs, and sanctions. The tool also generates AML and MiFID risk profiles. Complete risk assessment is done to identify potential risks that require greater research.

The LexisNexis Supplier risk management tool also enables automatic batch screening of current and new third-party entities. Automatic batch screening refers to the process of automatic checking of the third party entities against official sanction lists, Interpol lists, and other international lists. Thus, their credentials are verified for the benefit of the client company.

The third parties are classified by geographical exposure, activity, origin of clients and KYC compliance. Far reaching case administration alongside work process and review devices help in influencing the screening to process much more effective.

Integra Check

If the risk level indicates deeper research on the third party entity or the diligence spotter identifies a risk, then the third party risk management tool comes into play. This tool enables further investigation into the concerned third party entities for more thorough screening. This ensures that integrity and compliance risks are eliminated.

LexisNexis Entity

LexisNexis Entity is a cost-effective part of LexisNexis Supplier risk management system. The Entity gives access to a wealth of market intelligence which is not available on the open web. This is possible because it does not use conventional search engine method for research.

LexisNexis Entity uses PESTLE framework for Supplier risk management. PESTLE analysis framework uses Political, Economic, Socio-cultural, Technological, Legal and Environmental factors for media monitoring and research. The client companies are provided analytics and result visualizations to get an apparent picture of the third party networks and supply chains. Thus, the companies can identify and manage the risks in a more efficient manner.

The sources of research and monitoring include news, industry and trade journals, business information or journals, regulatory information, legal publications sanctions, PEP lists and more.

The company can customize risk analysis functions of the tool to identify the most crucial risk concerns that affect it.

Regulatory compliance

Compliance Solution with the local and global rules and regulations is more difficult for companies engaged in international trade. LexisNexis helps in protecting the business interests by the following methods.

•    Regular monitoring of suppliers and third-party risks to ensure complete compliance with the regulations.

•    Business information of third-party entities which help the company in determining their track record and presence of litigation.

•    Regular monitoring of Regulatoryinformation to ensure that the client company is always aware of the changes in the rules and regulations from time to time.

Financial risk in the form of fines, settlements, and others is averted by preventing compliance failures.

Highlight Features of Third Party Risk or Supplier Risk Management Program

It is a generally accepted fact that you have to put many great activities for building big reputation, yet just a single terrible thing could drive you to lose everything. This is the reason why supplier risk management program is implemented in business organizations. 

This particular program tends to provider administration prerequisites relating to administration of corporate governance, compliance solutions, risk management  and performance programs. These viable and far reaching arrangements enable business firms to merge provider GRC data in the association, lessen down expenses and lighten dangers found in provider supplier base.

Without a doubt, today the vast majority of the business associations are adopting  supplier risk management or third party risk management programs for boosting business execution. Truth be told, it acts as an impetus for increasing enhanced merchant execution by discovering every single conceivable hazard and dispensing with them by actualizing successful process changes. A portion of the featured highlights of these administrations are said beneath. Experience them to grow profound comprehension towards them.

• ·       Efforts are created to adopt unified approach for managing risk, governance, performance and  compliance risk management programs on supplier base.  

•     The risk, compliance solution and performance programs are automated in order to ensure that the defined standards are followed consistently and effectively.

• Reducing supplier risks through automated and proactive monitoring of supplier information.

• It facilitates you to perform business activities through customer driven scoring model.

•   Apparently, automated expiration notices and reminders are used for improving accuracy and compliance.

•  You will be able to make benefits from automated assessments of supplier and internal personnel.

•  KPIs and libraries of the standardized assessments are proposed by these services.

•   All the essential information related to scoring, supplier reporting and dashboard capabilities are captured.

• In case, if the organization identifies any third party risks or supplier risks involved, then efforts are made to apply predetermined correction action plans including deadlines and ownership that is easily monitored and tracked. This ensures supplier performance.   

The efficient supplier risk management needs you to make use of centralized and integrated technology platform for puling data storage resources containing supplier data. Most of the companies invest a lot in hiring effective technologies that can help them for coming out of the difficult situations.

The centralized third party risk management or supplier risk management programs help in mitigating supplier risks, supplier compliance solutions and boosting overall supplier performance. Not only this, these specialized program also support in building good reputation in the marketplace. What else one should look for after getting well-organized and managed supplier performance program! Invest in the best available supplier management services.