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, Director of the Optimizations Group; Kairi Isse, Managed Services Group Manager; Adam Bailey, Senior Vice President, Product Management and Alexander Cotoia, from the Volkov Law Group. In this Part 4, I visit with Adam Bailey, to look at the role of the Board in risk, audit, compliance, and ESG and the reporting from executive teams and GRC practitioners to take risks and seize chances.  

Bailey has worked to help organizations better manage their risk by providing insight and clarity to boards of directors. He strived to enable executive teams and GRC practitioners to assess and manage strategic risks, ultimately connecting boards, practitioners and executives together to innovate and drive growth. With the complexity of third-party relationships continuing to grow, companies need to adopt a continual improvement approach to contend with unforeseen risks. A corporate compliance function is not just something nice to have but a must and a Board needs clear and relevant data to make the best decisions. Organizations need to use the necessary tools to ensure that Boards had the visibility to manage their third parties and make informed decisions.

Key Highlights

1. A compliance function must support leaders through it reporting work. 

2. Companies can effectively manage third-party risk with a risk-based approach and robust processes. 

3. Connecting Board, senior executives, and practitioners together to enable organizations to take risks and innovate is critical.

Notable Quotes 

1.     "The key to this effective risk management is truly the follow up, the ongoing follow up to ensure that all the controls are in place and if needed, are changed." 

2.     "Continuous blanket monitoring of all third parties with every risk asset you can think of is just not feasible and probably wouldn't deliver the outcomes that we need." 

3.     "We know that change is constant, regulators are looking for risk management policies and practices which continually improve and evolve over time." 

4.     "We need robust processes and systems in place to make sure that when you create your third-party profile, it's screened against sanctions lists, embargo watch lists, et cetera, to provide the rich data that's there."

 Resources

Adam Bailey on LinkedIn

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