The Audit Committee’s Role in Third-Party Risk Oversight

February 9, 2017 BY Courtesy of THE ERM INITIATIVE, NCS University

  Almost every company interacts with a third-party on a daily basis, whether it is a business partner, service provider, or contractor. If the party has access to a company’s ...

Almost every company interacts with a third-party on a daily basis. If the party has access to a company’s intellectual property or network along the value chain, a risk is imposed that needs to be recognized and managed. 

 
Almost every company interacts with a third-party on a daily basis, whether it is a business partner, service provider, or contractor. If the party has access to a company’s intellectual property or network, provides services, or is a participant in the value chain in anyway, a risk is imposed that needs to be recognized and managed in some way.
 
The increased integration of companies and their suppliers causes customers to often perceive all contributors to a value chain as a single entity. In the event of a malfunction, defect, or a security breach, customers may not distinguish between the value chain providers and those who were actually at fault. This increased integration can unknowingly bring the possibility of increased reputational damage and increased liability... Click to read more
 
 
 
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