The FCPA Blog | By: Aaron Narva | September 08, 2017:
The growing complexity of third-party relationships, and the immediate regulatory and reputational risks of those third parties has procurement teams, compliance officers and legal departments working to figure out the best way to proceed.
When and how should they manage due diligence? How can they reduce risk with limited staff, limited budget and increasing expectations?
Today’s expansive risk environment requires new ideas and new technology solutions. Compliance personnel are expected to know more and know it immediately. The world of compliance has fundamentally changed and we all are working furiously to manage those changing expectations.
Law enforcement and regulators are experiencing a big shift in their expectations as well. Just as we’re all monitoring the evolution of artificial intelligence (AI) and how automation may impact a huge range of industries, so too are our regulators and legislators.
AI and automation have fundamentally altered the way companies approach risk by dramatically reducing the cost and time associated with managing and conducting due diligence on third parties. Regulators are increasingly aware of these capabilities and their expectations are rising as well. They expect more than one-time searches, manual, old or outdated audit reports, and one-size fits all approaches to due diligence and risk management.
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