March 20, 2023

Third-Party Management: A risk-based approach - Part 1: Michael Parker on Risk Mitigation

17 minutes

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."

Resources

Michael Parker on LinkedIn

Check out Diligent’s 3rd party products and services here.

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By Thomas Fox

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