Solution Overview

How to seize control of third-party risk with Digital

And get the upper hand over competition

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A retail giant faces over 90 lawsuits—and losses in the billions—after thieves steal its credit card records. A major bank is hit with fines of $85 million—plus civil penalties—for the deceptive practices its debt collection agency used. Disasters like these, triggered by third parties, are happening more and more often, with terrible consequences. Today’s global enterprises face more risks than ever. These threats come from internal and external sources—employees, suppliers, data breaches, natural disasters, and more. To complicate matters, complex supply chains and more onerous regulations are stretching traditional controls and safeguards to the limit.

Reacting is not enough. Companies need to identify, assess, mitigate, and counter these threats. Only a powerful, integrated, responsive, and proactive third-party risk management (TPRM) framework can deliver on these goals. Genpact’s TPRM solution, built on best-in-class digital technology, covers the breadth of potential risks. It’s scalable, works faster than traditional risk management methods, and provides visibility and control as it does. It cuts costs and helps predict potential outcomes throughout global operations.

The visibility imperative

Many firms aren’t equipped to prevent disasters from happening. And when they do, they can’t always limit the losses, often because of shortfalls in their risk management frameworks. These include:

  • Too many people with differing mandates—when no one owns risk management, redundancies, inefficiencies, and higher costs result
  • Business processes, such as e-sourcing or payment, don’t integrate risk management
  • No one conducts a periodic review of the framework
  • The risk management process doesn’t factor in changing regulatory requirements
  • The company isn’t focused enough on governance, quality assurance, or reporting
  • Fragmented processes make risk management costs too high

Competitive advantage is everything in an interconnected global marketplace. To stay ahead, companies need better visibility into their third-party associates. They need integrated responses that engage multiple stakeholders. In other words, they need a powerful, all-in-one platform that helps them seize control of third-party risk. They need it to be cost effective. And they need it today.

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Genpact’s end-to-end solution

Genpact’s approach to TPRM draws on our Lean DigitalSM methodology to deliver on client goals. It merges leadingedge technologies, design thinking, and classic lean management principles to produce a modular, all-in-one service. The solution, which leverages Genpact’s unique analytical, reporting, and risk management expertise, consolidates information from both external and internal data sources. Advanced digital technologies, such as natural language processing, machine learning, analytics, and enhanced visualization, power the service. Companies get unprecedented insight into the complexities of third-party risk.

TPRM offers complete risk coverage over third parties as shown in figure 1.

Genpact’s end-to-end third-party risk management solution

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​Delivering business impact​​

More than doubling the compliance rate for a financial services firm
A global financial services and insurance firm with annual revenues of over $40 billion faced increasingly complex regulatory demands. The reason: Its risk management program couldn’t cope with the 15,000-plus third parties it dealt with. To solve the problem, Genpact designed a comprehensive TPRM framework with ongoing monitoring. The solution uses simple, responsive dashboards to provide controls, audits, and risk remediation plans.

As a result, management gained a clear understanding of the risks the company faced—as well as how to mitigate, reduce, and eliminate them. In less than half a year, the firm increased its internal TPRM compliance rate from 40% to 90%. And a combination of remote and on-site execution slashed compliance costs in half.

Eliminating a manufacturer’s corrupt suppliers
A footwear and clothing manufacturer with operations in over 150 countries—some, in high-risk territories—couldn’t handle the challenges of TPRM. Because the firm had no way of knowing whether the 120,000 third parties in its sphere complied with local regulations, it risked violating anti-corruption laws. To address these concerns, Genpact partnered with LexisNexis to design 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 and flagged for elimination those engaged in questionable activity.

The new framework helped the company pinpoint over two dozen potentially problematic third parties. That greatly reduced the risk of regulatory penalties and safeguarded the enterprise from potentially incalculable damage to its reputation.

Best-in-class visibility and control

Third-party risks can damage or even destroy a company. As businesses work with more vendors and partners around the world, levels of complexity and risk are rising with no end in sight. That’s why organizations need a best-in-class TPRM solution.

We have unmatched analytical, reporting, and risk management expertise. And we have access to leading technologies. So we can provide forward-looking enterprises with enhanced visibility, insight, and control. That’s critical. Because taking chances is not an option. Delivering business impact

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