I recently attended the SCCE Utilities & Energy Compliance & Ethics Conference in Houston, TX. “Cutting-Edge Third Party Risk Management” was one of the breakout sessions. The presenters, Flora A. Francis and Andrew Baird of GE Oil & Gas, made a point of stating that a formal, dynamic compliance program designed around third party vendor management is an absolute necessity. It also must be continually monitored and refined.
As Francis and Baird noted during their presentation, “When is enough, ‘enough’?”
Answer: When you can show the government agency (regulatory body) asking that you have taken appropriate steps to design, implement, and enforce a compliance program that is generally effective in preventing and detecting criminal conduct. – U.S. Federal Sentencing Guidelines
More and more these days, it’s becoming quite apparent that it’s not enough to simply worry about the actions, ethics and branding of your own company. In today’s world it’s clear that the actions of those you do business with can have as much significance and impact on your organization as your own actions. Major factors are ever increasing legislation and regulation, a truly global economy that is available to businesses large and small, and the continual explosion of social media and its reach.
Look out for Rolling the Dice: Third-Party Vendor Management and Compliance, Part 2 coming soon!