Step 1 - Business Justification

The first step breaks down into two parts:

1. Business Sponsor

2. Business See more +

Step 1 - Business Justification

The first step breaks down into two parts:

1. Business Sponsor

2. Business Justification

Step 2 - Questionnaire

Step 3 - Due Diligence

Step 4 - The Contract

Step 5 - Management of the Relationship

The Evaluation specified the importance of this final step when it stated: Management of Relationships – How has the company considered and analyzed the third party’s incentive model against compliance risks? How has the company monitored the third parties in question? How has the company trained the relationship managers about what the compliance risks are and how to manage them? How has the company incentivized compliance and ethical behavior by third parties?

B. Managing Your Third Parties

I. Consolidate Third Parties but Retain Redundancy

II. Keep Tabs on Subcontracted Work

III. Make Sure Your Company is Legally Protected

IV. Keep Track of Your Third Parties’ Financial Stability

V. Formalize Incentives for Third Party Performance

VI. Auditing Third Parties

C. Levels of Due Diligence

Level I

First level due diligence typically consists of checking individual names and company names through several hundred Global Watch lists comprised of anti-money laundering (AML), anti-bribery, sanctions lists, coupled with other financial corruption and criminal databases.

Level II

Level II due diligence encompasses supplementing these Global Watch lists with a deeper screening of international media, typically the major newspapers and periodicals from all countries plus detailed internet searches. Such inquiries will often reveal other forms of corruption-related information and may expose undisclosed or hidden information about the company; the third party’s key executives and associated parties.

Level III

This level is the deep dive. It will require an in-country ‘boots-on-the-ground’ investigation.

See less -