Globalization and increasing regulatory pressures require organizations to examine their business relationships in order to assess risk, make informed decisions, and comply with laws. Government agencies are demanding high standards of business integrity. Failure to adequately scrutinize clients, vendors, agents and business partners could expose organizations to reputational damage, operational risk and even criminal liability. Ignorance is no defense – and what you don't know about your business partners can hurt you.
KPMG's recent Global Anti-Bribery and Corruption Survey noted that multinational corporations say that the difficulty in performing effective due diligence on foreign agents/third parties as one of their most challenging anti-bribery and corruption issues. As a result, companies are looking to build processes and programs to manage third-party risk that is efficient, scalable and fits their unique requirements. It also needs to be embedded into their overall compliance program. Many organizations have only just begun to develop processes to on-board new third-party intermediaries (TPIs) and put their existing TPIs through a third-party risk management (TPRM) program.
KPMG can help clients to identify the appropriate level of due diligence for TPIs, based upon such factors as jurisdictional risk, the nature of the industry and the service provided, the importance of the relationship, etc. KPMG can help create cost-effective, timely, and responsive reporting.