WORKSHOP B | Third Party Management Think Tank: A Comprehensive Rundown of How (and How Not) to Vet and Monitor Contract Performance, Payment and Compliance
What is it about?
(Registration & Coffee Start at 1:00 pm)
Vetting and monitoring third parties remains a perennial compliance challenge for companies. The challenges start with the on-boarding process and continue throughout the life of the third-party relationship. Recent settlements have seen companies admitting payments to politically-connected individuals and falsifying books and records to conceal payments to vendors associated with politicians. With evolving risk factors and compliance obligations, this interactive working group will draw a comprehensive guide on lessons learned from previous cases, provide a catalogue of common mistakes when checking that the commissions paid are done in exchange of a real service and share tools and tactics that peer companies are using to on board.
- What the latest investigations reveal about having a good due diligence report on third parties
- How far you need to go in vetting your supply chain: 1st, 2nd, 3rd, 4th and lower tier supply chain members
- What is missing in the questionnaire for third parties?
- Who conducts and gets to see the due diligence?
- What to do with information uncovered during the vetting process: How to evaluate red flags
- Common mistakes that happen when making the decision regarding which parties to use/not use – and why?
- Assigning responsibilities for the proposal and the business case for using third parties
- What should be in the proposal and the business case?
- Filtering and risk grading: what questions should you ask yourself?
- does the business proposal make sense?
- does the third party have the skills/resources to perform the contract?
- any other payments/connections the third party (or any of its shareholders/employees) have to the company?
- When should the relationship be approved and who should approve it?
- Contract and administration management: what is the scope of services in the contract?
- Contract performance and payments: the importance of the “proof of services”
- Audit rights and compliance training for third parties – how often should they be performed?
- Suspension of payments and services for suspected breach of compliance requirements
- Where multinationals are most at risk and how to implement an effective global internal system of controls