In today’s world, there can be no business without external stakeholders -whether they are customers, distributors, dealers, franchisees, suppliers, vendors, etc. In an increasingly globalised, connected, and turbulent world, it is important to protect your business from third-party risk. Here are 4 global trends that have turned the spotlight on third-party risk management:

1. Globalisation and Outsourcing: As businesses expand and scale globally, they increasingly rely on third parties to drive revenue growth and cost efficiencies. This introduces new third-party risks that need to be managed effectively to avoid potential hazards.

2. Compliance Requirements: With an ever-changing landscape of regulations, organisations must navigate a maze of compliance obligations. Third-party risk management plays a crucial role in ensuring that vendors, suppliers, customers and distributors are legally compliant with regulations in all jurisdictions in which they operate.

3. Supply Chain Disruptions: Unforeseen events such as natural disasters or geopolitical crises can disrupt supply chains, impacting businesses’ ability to deliver products or services. Third-party risk management helps identify vulnerabilities within the supply chain and implement measures to mitigate potential disruptions, thus ensuring business continuity.

4. Diverse Third-party Landscape: Engaging with a wide range of third parties introduces complexity to an organisation. Counterparties in different countries have their own unique characteristics and risks. Working with counterparties of different sizes, ranging from large corporations to SMEs, also poses its own challenges. Effective third-party risk management involves understanding the diverse landscape of counterparties, assessing their risk profiles, and implementing appropriate controls to safeguard against potential issues.

Through proactive third-party risk management, businesses can navigate complexity, comply with international regulations, maintain supply chain resilience, and protect their operations and reputation while simultaneously driving financial growth. At Rubix Data Sciences, we help our customers perform the KYC, and assess and monitor the risk of third parties, irrespective of their size, legal constitution or geographic location. Whether the third party you are dealing with is an SME or a large corporation, Rubix helps you in validating its identity and assessing its credit, supplier and compliance risk using the various tools that we have developed, including:

– Rubix Video KYC and e-KYC Solution for KYC and onboarding
– Legal Entity Identifier for identity validation
– Rubix ARMS Platform for credit, supplier and compliance risk assessment
– Rubix EWS Platform for risk monitoring

Contact us today at info@rubixds.com or 022-49744274 to learn more.