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Indian Enterprises Ill Equipped to Deal the Third Party RiskOver 70% of Indian organizations do not have adequate knowledge or appropriate visibility into third-party outsourced relationships - Sachin Paranjape, Partner, Deloitte India | ||
India No company can function as an island and as our eco system broadens it typically deals with many entities like customers, partners, affiliates and others. When organized together these entities form what we term as the “extended enterprise” which is closer to the core of business than ever before. Organizations that step up to the challenge of developing programs to better manage this risk can elevate their position in the market by unleashing with confidence the reach, expertise and relationships that third parties can bring.
Third party risk management has to become a top-of-mind priority for organizations. In this respect, our recent (third) annual EERM (Extended Enterprise Risk Management) survey, based on 975 responses from a variety of organizations across 15 countries of Asia Pacific, Americas, Europe, Middle East and Africa region has highlighted some interesting findings. 70% of organizationsin India recognize an increase in risk but remain Ill-equipped to deal with it because of inadequate or absolutely no knowledge of sub-contractors engaged by their third parties. In fact, 14% of the respondents in the survey stated that third party-outsourced relationships are not identified, monitored or reviewed at all.
Companies today have to rely on relationships that are multiple and third party in nature, and typically outsourced. These are like outliers on the risk periphery – even for organizations that place strong focus on risk. Our survey report highlights the below key areas where organizations could benefit from further effort:
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