Navigating Third-Party Risk Management: An EU & UK Perspective
The structures and realities of business today have changed. Traditional brick-and-mortar business is outdated: physical buildings and conventional employees no longer define the organization. The modern organization is an interconnected web of relationships, interactions, and transactions that span traditional business boundaries. Layers of relationships go beyond traditional employees to include suppliers, vendors, outsourcers, service providers, contractors, subcontractors, consultants, temporary workers, agents, brokers, dealers, intermediaries, partners, and more. Complexity grows as these interconnected relationships, processes, transactions, and systems nest themselves in intricacies, such as deep supply chains and subcontracting relationships. Roaming the hallways of an organization means crossing paths with contractors, consultants, temporary workers, and more. Business today relies and thrives on third-party relationships; this is the extended enterprise.
The European Union and the United Kingdom stand at the forefront of global trade and business partnerships. However, with increasing interconnectivity comes the challenge of managing third-party risks. For companies headquartered, operating within these jurisdictions, or in the supply/value-chain of companies that do, understanding and mitigating these risks is not only crucial for resilience but also for compliance.
The Essence of Third-Party Risk Management
Third-Party Risk Management (TPRM) involves . . .
[The rest of this blog can be read on the Diligent blog, where GRC 20/20’s Michael Rasmussen is a guest author]