Meeting the Challenges of Third-Party Risk Management

Manufacturing and distribution (M&D) companies increasingly rely on third-party vendors and business service providers. While such third-party relationships can prove beneficial to a company, they also come with risks the company must identify and manage properly. After all, if a company can’t deliver on its commitments due to third-party failures, it’s the company that will bear the blame. This article provides a framework for effective third-party risk mangement that includes due diligence, ongoing management, and periodic evaluation, as well as strong ties to the company’s operational and enterprise risk management strategies.