Managing risk and managing compliance frequently follows the same path.
In a recent White Paper, entitled “Third Party Essentials: A Reputation/Liability Checkup When Using Third Parties Globally”, authors Marjorie Doyle and Diana Lutz prepared a list of things to check in managing compliance with the Foreign Corrupt Practices Act in hiring third parties around the world to sell products or services on your behalf.
I wanted to pass this on to readers who may be involved in negotiation and managing sales channel types of contracts. I also think that most of the points they make in the white paper are also good suggestions for procurement risk management.
The full post is available at:
Corporatecompliance.org/staticcontent/thirdpartyessentials-doyle.pdf
Some of the things they recommend are
Databases of third parties and all their information,
Risk assessment of the third parties and priority for their management
Due diligence processes in selection of third parties.
Documentation of the due diligence.
Contracts to establish expectations.
Individuals to manage the third party.
Being vigilent to potential red flags that should warrant further investigation.
All of these are activities that supplier management should be doing with a focus on potential supply chain risk.
