Third Party Risk Management
Turn Enterprise Risk into Business Opportunities
As a company that outsources business functions to third parties, you understand that risk is inevitable. Even with the appropriate controls and effective governance, the ever-increasing complexity of third-party relationships can make it difficult to meet business objectives and enhance your enterprise value. SC&H’s Third-Party Risk Management (TPRM) advisors can help your organization identify, assess, and manage risks associated with your use of third parties to:
Increase Transparency
Enhance Processes
Strengthen Controls
Improve Third-Party Contracts
Validate Compliance
Generate Payments to Resolve Non-Compliance
Strengthen Governance to Manage Risk
Even small errors can add up quickly and bleed profits from your bottom line. Don’t let third-party relationships without effective oversight jeopardize your reputation, operations, and business outcomes. This includes risks already on your radar, those that may already be wreaking havoc, and those you might not even know exist, including but not limited to:
Financial Risk
Such as over- or under-payments based on contracts, transparency gaps around third-party financial reporting, process and control enhancement opportunities, and intentional errors and fraud that impact your bottom line.
Legal, Regulatory, and Compliance Risk
Like co-employment, 1099 compliance, federal and state regulations that can expose your organization to infractions or significant legal consequences.
Operational Risk
Most commonly, service level agreements, key performance indicators, supply chain reliability, and undisclosed fourth parties that, when left unmonitored or improperly managed, can disrupt the normal course of business.
Data Security and Data Privacy Risk
Including access to sensitive data, risks of cybersecurity threats based on expanded attack surfaces, and undetected data breaches leading to potential data loss or data exposed inadvertently by third parties that have access to or interact with sensitive data.
Strategic Risk
In particular, sustainability, Environment, Social, and Governance (ESG), company reputation, continuity of operations, and supply chain security, which can lead to a failure to deliver on expected strategic outcomes.
Enhance Enterprise Value Through Our TPRM Strategy Session
Through our consultation, our team will dig into your TPRM strategy to implement a measured, risk-based approach tailored to your organization’s unique risk profile. We work to understand your governance posture, risk tolerance, and other key factors. We then leverage our in-depth experience and expertise to design value-generating solutions that seamlessly integrate third-party risk management into your existing processes and governance. Typical outcomes include:
- Enhanced, comprehensive third-party transparency
- Weighted, risk-ranked scoring to identify the most critical risk areas
- Highlighted risk mitigation opportunities
- Practical recommendations for potential risk management activities
- Best practice recommendations around policies and internal controls
- Turnkey, implementable phase two solutions to address unmitigated risk
Prevent Problems Before They Arise
Many organizations use contracts as a tool to safeguard from third-party risk, but even the most thorough contracts cannot account for every threat. Moreover, contracts don’t manage themselves and compliance must be carefully validated. Our team can help you define a clear TPRM strategy and answer even your toughest questions, including but not limited to:
How are we prioritizing the various third-party risks in our supply chain?
What governance have we implemented to ensure third-party compliance with our terms?
How does our organization assess the effectiveness of existing governance programs?
What groups or individuals within the organization are accountable for TPRM?
What resources does our organization need to design and manage an effective TPRM program?
Rely on Our Risk Adverse Professionals to Get it Done
Our team is comprised of professionals dedicated to full-time TPRM. With a variety of backgrounds including but not limited to CPA, CIA, CFE, and CISA, our experts have experience working with organizations with high and low levels of TPRM maturity.
book a consultationExplore Phase Two Solutions
Backed by the resources of a full-service cybersecurity, management consulting, audit, and tax firm at SC&H, our team offers a unified approach and all-encompassing services that meet all your third-party risk management needs, including:
SOC Audits
Establish credibility and build trust with your service organization’s stakeholders through independent, third-party assurance that you take security and data processing seriously.
Microsoft SSPA Attestation
Protect confidential and private data throughout your supply chain to build customer trust and ensure compliance.
Direct & Indirect Spend Audits
Detect, prevent, and recover supplier overpayments to increase transparency, validate contract compliance, and strengthen relationships.
