Third Party Risk Management

Risks and Compliance Risks

Risks are defined as uncertain events that affect the performance of the contract or even the strategic objectives of the company.

Compliance risks relate to compliance with laws and regulations, governance codes, voluntary certifications and the frameworks and agreements agreed internally within the organisation.

The different types of risks are: strategic, contractual, interruption of services/production, reputational damage, financial loss, legal/compliance risks, data loss and geopolitical. 

Risk Management involves avoiding these risks, but also making informed decisions that strengthen the resilience and adaptability of the organisation.

Our PACT approach facilitates identifying and mitigating risks

Due the fact that some risks can't be foreseen (black swans), and the impact of these risks can be significant, our risk analysts endeavour to identify as many potential risk factors as possible in advance. Because it is impossible (and too costly) to mitigate all risks, we discuss the risk tolerance of the organisation (What is the likelyhood? What is the impact? Which risk can be tolerated?) with senior management. 

Our activities:

• Determination of the risk tolerance supporting the policy, mission and strategy of the organisation
• Identification of risks based on contractual conditions
• Identification of risks based on supplier database
• Strategy and mitigation plan
• Priority and heat map

The result of implementation Risk Management: The continuity of your business

By identifying risks in a timely manner and implementing control measures, the likelihood of unexpected problems is significantly reduced. This leads to greater business continuity, as processes are less likely to be disrupted by incidents such as technical failures, reputational damage, financial setbacks or security issues. In addition, risk management provides greater stability and predictability, enabling managers to make more informed decisions.

Conclusion

Together with your team, we make a good assessment of your risks and that the results of this analysis correspond to the risk profile (risk tolerance) of your company. Closing all doors in the context of risks seems to us to be an impossible and too expensive solution. Know what your risks are, determine the likelihood of these risks occurring, determine the impact/damage and avoid or tolerate these risks. Draw up a good communication plan for all parties involved, so that everyone knows what their role is within the company in terms of avoiding risks and what to do if the risk actually occurs.