Thu, Mar 12, 2020
COVID-19 is wreaking havoc on global supply chains and business continuity plans of firms around the globe. Third parties spread across multiple jurisdictions up and down a company’s supply chain network are experiencing various levels of disruption. Despite the efforts of governments to minimize the impact of the epidemic, COVID-19 is likely to have a lasting effect on supply chains for several months if not longer beyond the pandemic’s peak.
Considering this unprecedented disruption, companies with global supply chains now face increased pressure to effectively manage their third parties. On the one hand, companies need to ensure the resiliency of the supply chain by rapidly identifying and possibly onboarding backup third parties to replace those that might be suddenly sidelined due to the effects of COVID-19. At the same time, however, companies need to continue to minimize their exposure to the legal and reputational risk inherent in relying upon third parties.
Here are several steps compliance officers can take to help meet both objectives.
Unfortunately, the reality is that COVID-19 will continue to impact global supply chains for the foreseeable future, even after the pandemic peaks. While there is no silver bullet to avoid these types of major disruptions, compliance officers can proactively take steps to do their part to minimize the risk to their firm’s supply chain operations. Doing so will help ensure that your firm’s business continuity plans remain relevant during this major supply chain challenge.
Comprehensive spectrum of background checks, screening and due diligence services.
In today’s fast-paced world, disruptions can happen anytime. Kroll’s full suite of business continuity, resiliency and disaster preparedness capabilities is designed to prepare your enterprise for unexpected risks and maintain competitiveness throughout the full lifecycle of any disruption.
Manage risk, not spreadsheets. Identify and remediate cybersecurity risks inherent in third-party relationships, helping achieve compliance with regulations such as NYDFS, FARS, GDPR, etc.