Case Study: Centralising Third-Party Risk Management For An Industry Leader in The Manufacturing Space
ethiXbase recently worked with one of the largest global electronics manufacturing companies to centralize and automate their third-party risk management process, in order to achieve greater efficiency and effectiveness.
At a Glance
As an industry leader in the manufacturing space, this global company was under pressure. Despite the company’s international reach, the legal and compliance team was spread thin. Third-party due diligence checks were usually conducted in an ad-hoc fashion, frequently resulting in cursory internet searches— which often proved ineffective and cumbersome. Documents were paperbased, and it was near-impossible to keep track of the paper trail.
In a push for clarity, the manufacturing company partnered with ethiXbase to systemize their third-party risk compliance programs—transforming the company’s reporting capabilities, and with it, the compliance team’s reporting acumen and efficiency.
The manufacturing company operates and innovates in a wide array of technological business arenas—including semiconductor devices, automotive electrical parts, elevators, escalators, cooling and heating products, digital printers, solar panels, factory automation equipment, and more—all which include working with numerous third parties sourced across the world. Operating all over the world this North American entity employs over 4,000 people.
A company’s technological prowess in one arena doesn’t necessarily mean it trickles down to all of its business departments—far too often, some departments are left years behind. And usually, it’s the legal and compliance department that are often playing “catch up.”
So when it came to managing the company’s third parties, its compliance system was typical of many of its peers: manual and disconnected.
It was not very effective. Third-party due diligence checks were often conducted via Google searches, which sometimes cost the company hours or, more frequently, resulted in uncertainty and uneasiness when results yielded nothing.
Furthermore, the handling of information about third parties was disjointed in numerous spreadsheets and internal documents. Not only did the documents require the old-fashioned print-sign-scan method of decades ago, but once a deal was finalized, the record of it was nearly non-existent. Documents were almost impossible to find—and updating them was a truly labor-intensive process, regularly overlooked.
The Senior Vice President of Human Resources knew their third-party compliance process had to change in order to be effective—but the question was how.
The Senior Vice President of Human Resources was looking for a complete third-party end-to-end solution: and he found it with ethiXbase. Impressed by its configurable and customizable functionalities and its aesthetic, he believed it would be straightforward to use and to train others on— which quickly proved true during the initial implementation.
“Compared to competitors, there seemed to be more flexibility within ethiXbase’s platform — specifically within the partnership where we could configure the platform and customise the questionnaire to meet our company’s compliance needs,” explains The Senior Vice President of Human Resources. Most critically, he saw that would automate third-party questionnaires—including an automated follow-up, which he did not think his team could replicate.
Through the ethiXbase 360 platform, all necessary third-party information could now be found online, readily accessible to everyone at the company. Relevant documents were now easily uploaded, and consequently, onboarding new third-parties became a far more simple process.
“Prior to working with ethiXbase, it was hard for me to track down who had been screened, what the results were; the questions or the pending questionnaires—these were difficult near-impossible to find, but now it’s really easy to understand. Screenings… are more efficient… and this greatly reduces our duplicate efforts.” Senior Vice President of Human Resources.
Most notably, anyone on the team can easily access an executive review—a high-level report that allows one to pull everything needed: such as how many questionnaires have been distributed, or if the third-party is of a low, medium, or high risk.
To the company’s compliance team, this information has not only changed through its organized accessibility—but the information is understandable, ready at their fingertips
- Consolidated information into one single platform; this means that the company has a centralized view of all third parties’ engagements, with a view of where each third-party is at in the third-party compliance lifecycle.
- The flexibility to customise the due diligence questionnaires (DDQ) to meet the company’s compliance needs; without having to change the company’s third-party compliance process
- Easy access to a high-level report that allows one to pull everything needed: such as how many questionnaires have been distributed, or if the third-party is of a low, medium, or high risk.
Besides realizing greater efficiencies, the senior management team now have greater confidence – along with access to supporting evidence – that all third parties have been properly assessed and that the level of risk is understood. It adds a level of comfort and confidence to the team to look ahead and make better informed strategic decision.
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