Important Steps to Be Taken For Efficient Third Party Screening!
In today’s world of global networking, companies are facing tough competition and are having hard time in survival. They need to be agile and efficient to build a business and survive it. And for this they need to co-operate and collaborate with several other business vendors, suppliers and contractors and build a comprehensive business network.
With alarming increase in number of corporate fraud cases across the globe, various regulatory bodies are taking strict steps to regulate the company proceedings and recommends counter party due diligence before collaborating with any vendor, supplier or other third party.
Basically third party due diligence is the process of recognising various risks and potential threats involved in associating with any third party. This screening process not only eliminates those risks but also gives you the confidence of associating with the right third party. Associating with any third party without due diligence not only put your company at risk of fraud, security breach and other such potential dangers but also make you face the wrath of the regulators and the customers.
Steps of third party screening!
- Once you start with the procurement process and asked for proposals for references, your process of due diligence begins. You will need to screen all the applications received based on their eligibility and your company standards. After that you will short list at least four to five vendors who will go in next stage of screening.
- In next stage of screening you will need to find access to appropriate contacts and internal stake holders of the vendor under consideration. Best way to facilitate the security review during the procurement process is to communicate with the internal stake holders of the company and find the exact state of their business.
- Next step is to gather each and every bit of information about various services offered by the vendor.
- It is not only important to gather information about the vendor but it is also important to have a clear idea about which information and applications of your company vendor under consideration will have access to.
- Once you are clear about your status, it is time to determine all the risk that the vendor pose or may pose to your company. For this you will have to jot down right questions to be asked to the vendor.
- Next step is to send questionnaire to the vendor and request him to complete it. Once the questionnaire is completed you can evaluate the answers to evaluate the risk.
- Last step is to draft the plan, protect your organisation and make sure all the documents are in safe storage.
Netrika is one of the best companies in India for third party screening. Get in touch with them for any queries that you may have.