More organizations are utilizing third parties to achieve their strategic objectives, increasing efficiency and cost savings by shifting non-core or specialized functions to more experienced providers. As outsourcing grows in popularity and provider options rapidly increase, regulatory oversight is also expanding to monitor the sensitive data and processes that third parties are managing. What must be remembered is that while processes can be outsourced, their inherent risks cannot.
With resulting productivity and financial benefits, the use of third parties is projected to further increase in the future. Therefore, your third-party controls and monitoring strategies must evolve, not only to ensure that third parties are performing effectively and in compliance with your agreements, but also to secure proprietary information and protect your company from brand reputational damage or inadvertently violating laws.
Here are five concepts to consider when evaluating your third-party relationships.