Day 20 - Third-Party Risk Management Process

Welcome to a special podcast series on the Compliance Podcast Network, 31 Days to a More Effective Compliance Program. Over these 31 days of the series in January 2025, Tom Fox will post a key part of a best practices compliance program daily. By the end of January, you will have enough information to create, design, or enhance a compliance program. Each podcast will be short, at 6-8 minutes, and will include three key takeaways you can implement at little or no cost to help update your compliance program. I hope you will join us each day in January for this exploration of best practices in compliance.  On Day 20, we delve into the third-party risk management process, a crucial aspect of corporate compliance under the FCPA. Third parties continue to pose the highest risk, necessitating an integrated and operational approach throughout the company. The episode outlines the five essential steps in the third-party risk management life cycle, as mandated by the DOJ in the 2020 FCPA Resource Guide. These steps include business justification, third-party questionnaires, due diligence, compliance terms and conditions, and post-contract management and oversight. Each step is explored in detail, emphasizing the importance of documenting business cases, performing thorough due diligence, and maintaining diligent oversight to mitigate potential FCPA violations. Key takeaways include the necessity of using the full five-step process, involving business development and ensuring all steps are operationalized with business unit representatives. Join us tomorrow for Day 21 to discuss managing your third parties. Key highlights: Introduction to Third Party Risk Management The Five Steps of Third-Party Risk Management Key Takeaways  Resources: Listeners to this podcast can receive a 20% discount on The Compliance Handbook, 5th edition, by clicking here.  Learn more about your ad choices. Visit megaphone.fm/adchoices