Third-party screening solutions are a must-have for compliance teams amidst supply chain disruptions and rapidly shifting regulatory landscapes.
How do you know which third-party automation offerings provide the most bang for your buck?
Here are five features to look for when selecting a platform.
1) Risk Indication
Third-party risk management is not a one size fits all process. Factors to consider include your company's workflows, policies, and risk tolerance. The ability to benchmark third parties based on your company’s risk concerns eliminates a common pain point of due diligence clients - having to sort through a lengthy report in order to identify organization-specific red flags.
2) Ongoing monitoring
The information contained in a traditional due diligence report becomes dated the moment it lands in a client’s inbox. Annual refresh reporting, while beneficial, carries the risk of missing out on pertinent information for months at time. Ongoing monitoring alleviates this concern by bringing relevant information to attention without delay.
3) Escalation to Enhanced Due Diligence (EDD)
Online databases permit the rapid retrieval of public records from worldwide sources, however, this information may only provide basic details. Enhanced Due Diligence (EDD) driven by human analysts builds off these findings to paint a fuller risk picture.
4) Global Reach
International expansions, cross-border deals, and stretching supply chains increase a company’s global risk exposure. Confirm a third-party management platform’s ability to generate questionnaires in foreign languages or escalate automated findings into Enhanced Due Diligence (EDD) conducted by multilingual analysts.
The ability to build a credible and defensible diligence framework, as outlined by the DOJ, merits equal consideration when selecting a screening solution. Being able to show every compliance step, decision, and action taken—from onboarding to reporting—streamlines, supports auditing, and allows compliance teams to efficiently respond to regulator requests.
To learn more about third-party risk management priorities, connect with Vcheck Global. Vcheck Global's Rapid Enhanced Diligence (RED) screening solution provides comprehensive and automated risk screening and ongoing monitoring of your entire third-party portfolio.