Your agency checks out the customers with which you do business. You make sure they’re running legitimate, ethical businesses and their credit history is solid. But what about your suppliers? Could vendors be putting your agency at risk?
You’re responsible not only for the lawfulness of your agency but also for the actions of businesses in your supply chain, no matter where they’re located. The globalization of business increases the level of compliance risk government agencies. From anti-bribery and corruption laws, to sanctions regimes and PEPs, you need to stay alert to possible threats to your agencies reputation.
In today’s unforgiving regulatory climate, due diligence of vendors is critical. You’re expected to identify, assess, monitor and mitigate risks throughout your supply chain. Here are some tips to help you in your evaluation of third-party vendors:
Before buying from a supplier, you need a complete risk profile of the vendor and its owners. Waiting until a problem emerges is perilous and could result in fines, sanctions and severe reputational damage. The above tips should help you to be more thorough and proactive.
Don’t take a chance of working with any entity that could be involved in illegal practices. With access to critical business intelligence and the right solutions, you can make informed—and safe—decisions.
Want to know more? Read the full tip sheet, 6 Tips for Conducting Vendor Due Diligence and Reducing Risk in Your Supply Chain.