Enterprise Risk & Compliance
Third Party Risk Management
Generating Enterprise Risk and Compliance Impact
Against a backdrop of growing risks from internal and external factors - from employees and suppliers, data breaches, natural disasters - and longer and more complex supply chains and increasingly onerous regulations, traditional controls and safeguards are being stretched to the limit. Genpact provides companies with responsive and proactive third-party risk management (TPRM) operations that identify, assess, mitigate, and respond to the prevalent third-party risk.
Genpact's TPRM solution draws on its Lean DigitalSM approach, which combines contemporary digital technologies, design thinking, and classic Lean management principles to deliver a solution aligned to business outcomes while taking into account the complex legacy operations of many enterprises.
This modular, comprehensive vendor risk management service leverages Genpact's unique analytical, reporting, and risk management expertise, while consolidating information from multiple external and internal data sources. Together with a tightly focused set of digital solutions, such as natural language processing, machine learning, advanced analytics, and enhanced visualization, the methodology provides companies with unprecedented insight into the complexities of third-party risk.
- Current state assessment and gap analysis based on leading practices
- Development of policy and procedures for the gaps identified
- Technology selection and optimization
Third- party profile
- Captures key information such as contact, markets served, product information, etc.
- Pulls data from authenticated public sources and third parties
Third- party screening
- Screens third parties on sanctions, embargo list, stated-owned companies, politically exposed personas, negative media, and related risks
- Combines multiple data feeds, including public information
Financial risk assessment
- Assessment of third party's financial stability to sustain/support continuous and scalable operations with adequate quality
- Employs state-of-the-art scoring software with regular updates
- Detailed risk assessment of specified risk parameters through workflow tools
- Reduces cycle time with intelligent questionnaires and detailed industry domain knowledge
- Runs third-party audit programs across operational, information security, and compliance risk, etc.
- Supports remote or on-site approach to reduce cycle times and to formulate results-oriented action plans
Dashboards and risk scorecards
- Offers in-depth third-party risk reports
- Custom dashboards with near real-time updates and end-to-end process visibility
How Genpact significantly improved a client's financial services compliance
A global banking, financial services, and insurance firm with annual revenues exceeding US$40 billion had to address increasingly complex regulatory demands, since the firm lacked an end-to-end risk management program that would need to encompass more than 15,000 third parties.
Genpact designed a comprehensive TPRM framework that included controls assurance, audits, and risk remediation plans with ongoing monitoring in a series of simple, responsive dashboards.
Management gained a clear understanding of the nature of the risks the company faced, and how to mitigate, reduce, and eliminate them. As a result, the firm increased its internal TPRM compliance rate from 40% to 90% in less than a year. By combining remote and on-site execution, the firm slashed compliance costs in half.
Smart TPRM eliminates corrupt suppliers in high-risk territories
A footwear and apparel manufacturer with operations in more than 150 countries was under-equipped to handle the challenges of TPRM. The company had no existing mechanism for ensuring that 120,000 third parties were in compliance with local regulations. As most of these third parties were in high-risk territories, the company was in danger of violating anti-corruption laws
Genpact partnered with LexisNexis to design and build an end-to-end screening process with built-in data analytics. Genpact also screened the company's existing network of third parties in high-risk territories, identifying and eliminating those engaged in questionable activity.
The new framework enabled the company to identify more than two dozen potentially problematic third parties. The result was reduced risk of regulatory penalties and greater protection from potentially incalculable damage to the company's reputation.