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Life Sciences Third-Party Risk Management
Optimizing impact through third-party risk management
Leveraging third parties can help your middle market life sciences business gain proficiencies and contribute to your organization’s overall success, but there are also risks associated in working with these vendors and organizations, especially related to regulatory compliance, data security and reputational impact.
Failure to address these vulnerable areas with your third parties can result in financial loss or expose your organization to further regulatory or legal challenges. Explore our third-party risk management insights below.
- What is third party risk management? Life sciences companies must understand the risk factors involved with these relationships, from initial planning to third-party termination, to proactively mitigate and manage them in a responsible manner.
- Third-party risk management policy: Organizations should strive to protect themselves by establishing adequate policies, procedures and internal controls that adhere to anti-bribery and anti-corruption laws. Ensuring adequate controls is critical to being successful in the heightened enforcement environment surrounding the life sciences industry.
- Third-party risk management regulations: As your life sciences company leverages resources abroad and expands globally, compliance with the Foreign Corrupt Practices Act (FCPA) becomes a business imperative for your organization. Noncompliance with these strict laws, whether through your immediate business or via your third-party relationships, could be costly from a reputational standpoint as well as affect your bottom line and future profitability.
- Third-party risk management best practices: While there are many benefits to working with third parties, so too come areas of risk. Life sciences companies should be especially mindful of three major areas of concern: regulatory compliance, data security and reputational impact. Failure to address these vulnerable areas with your third parties can result in financial loss or expose your organization to further regulatory or legal challenges.