Solution
Overview
Generating risk and compliance Impact
Adopting digital technologies to
manage third-party risks
A retail giant faces over 90 lawsuits and losses in the billions when its credit
card records are stolen. A major bank is hit with fines of $85 million plus civil
penalties when its debt collection agency is charged with deceptive practices.
Disruptive events like these –­ triggered by the actions of third parties – are
increasing not only in frequency but in the severity of their consequences.
In today’s global marketplace, enterprises are confronted by a growing
number of risks from internal and external factors, from employees to
suppliers, data breaches, natural disasters, and more. Traditional controls and
safeguards are being stretched to the limit due to longer and more complex
supply chains and increasingly onerous regulations.
DESIGN • TRANSFORM • RUN
Merely reacting is not enough. Companies need
mechanisms that identify, assess, mitigate, and
respond to every type of third-party risk. Responsive
and proactive third-party risk management (TPRM),
built on best-in-class digital technology, is essential
to cover the breadth of potential risks. Powerful,
integrated TPRM solutions provide businesses with
increased visibility and control, greater speed and
scalability, reduced cost, and the ability to predict
potential outcomes throughout global operations.
The visibility imperative
Clearly, it is important to manage the wide variety of
third-party risks. But many businesses are challenged
to prevent external events from occurring in the
first place and limit losses when they happen. These
difficulties are due in large part to shortfalls in their
current risk management frameworks, such as:
• Multiple parties working on differing mandates,
leading to a lack of ownership, repetitiveness,
inefficiencies, and higher turnaround time and cost
• TPRM not being integrated in business processes
like e-sourcing or payment
• No periodic reviews of the framework
• Not factoring changing regulatory requirements
into the risk management process
• Reduced focus on governance, quality assurance,
or reporting
• Inflated costs due to fragmented processes
To seize competitive advantage in an interconnected
global marketplace, companies need better visibility
of the risks associated with the third parties that
they work with, in addition to integrated response
capabilities that engage multiple stakeholders. They
need an all-in-one platform that helps them manage
and seize control of their third-party risk around the
world, and a cost-effective yet powerful solution. And
they need it all today.
Genpact’s end-to-end solution
Genpact’s TPRM solution draws on its Lean
DigitalSM methodology, that merges leading-edge
digital technologies, design thinking, and classic
Lean management principles to deliver a solution
aligned to business outcomes. This modular, all-inone risk management service leverages Genpact’s
Dashboards and risk scorecards
TPRM framework
• Customized dashboards for proactive
risk management:
- Near real-time updates
- End-to-end process visibility
- In-depth third party risk reports
- Progress visibility of risk
remediation actions
• Current state assessment, gap analysis,
and benchmarking
• Develops policies and procedures to
address gaps
• Technology selection and optimization
Audit
Inherent risk assessment
• Enhances coverage without losing the
depth of assessments through remote
and onsite audits
• Audits across risk categories
• Creates results-oriented actions plans
Digital TPRM
utility
Due diligence
• Captures customer-specific risks from
third parties
• Triggers risk assessment processes
through workflow
Profiling and screening
• Detailed due diligence on risk
parameters through workflow tools
• Reduced cycle time with intelligent
questionnaires
Financial risk assessment
• Captures basic information on third parties
• Screens third parties on sanctions, adverse
media and political affiliations
• Combines multiple data feeds, including
public information
• Assessment of third parties financial
stability to support continuous and
scalable quality operations
• Leverages multiple data sources,
including financial agency ratings
• State-of-the-art scoring software with
regular updates
Figure 1: Genpact’s end-to-end third-party risk management solution
GENPACT | Lean Digital | Solution Overview | 2
unique analytical, reporting, and risk management
expertise, while consolidating information from
multiple external and internal data sources.
Powered by advanced digital technologies, such
as natural language processing, machine learning,
advanced analytics, and enhanced visualization, it
provides companies with unprecedented insight
into the complexities of third-party risk.
Armed with all these capabilities, digital TPRM is
designed to offer complete risk coverage over third
parties through all the modules listed in figure 1.
Case
Study
Best-in-class visibility and control
Third-party risks can damage or even destroy a
company. As businesses work with more vendors
and partners around the world, levels of complexity
and risk are rising with no end in sight. That’s
why organizations rely on best-in-class digital
TPRM solutions. With our unmatched analytical,
reporting, and risk management expertise, as
well as our access to leading technologies, we
provide forward-looking enterprises with enhanced
visibility, insight, and control.
How Genpact significantly improved a client’s financial services compliance
Challenge
A global banking, financial services, and insurance firm with annual revenues exceeding $40 billion had to
address increasingly complex regulatory demands, since it lacked an end-to-end risk management program that
could encompass over 15,000 third parties.
Solution
Genpact designed a comprehensive TPRM framework that included controls assurance, audits, and risk
remediation plans with ongoing monitoring in a series of simple, responsive dashboards.
Impact
Management gained a clear understanding of the nature of the risks the company faced, and how to mitigate,
reduce, and eliminate them. As a result, the firm increased its internal TPRM compliance rate from 40% to 90%
in less than a year, while a combination of remote and on-site execution slashed compliance costs in half.
Case
Study
Smart TPRM eliminates corrupt suppliers in high-risk territories
Challenge
A footwear and apparel manufacturer with operations in over 150 countries was under equipped to handle the
challenges of TPRM. The company had no existing mechanism for ensuring that its 120,000 third parties were in
compliance with local regulations. As most of them were in high-risk territories, the company was in particular
danger of violating anti-corruption laws.
Solution
Genpact partnered with LexisNexis to design and build an end-to-end screening process with built-in data
analytics. Genpact also screened the company’s existing network of third parties in high-risk territories,
identifying and eliminating those engaged in questionable activity.
Impact
The new framework enabled the company to identify over two dozen potentially problematic third parties. The
result was greatly reduced risk of regulatory penalties and greater protection from potentially incalculable
damage to its reputation.
GENPACT | Lean Digital | Solution Overview | 3
About Genpact
Genpact (NYSE: G) is a global professional services firm focused on delivering digital transformation for our clients, putting digital and data to work
to create competitive advantage. We do this by integrating lean principles, design thinking, analytics, and digital technologies with domain and
industry expertise to deliver disruptive business outcomes – an approach called Lean DigitalSM. We deliver value to our clients through digital-led,
domain-enabled solutions that drive innovation, and digital-enabled intelligent operations that design, transform, and run clients’ operations. For
two decades we have been generating impact for clients including the Fortune Global 500, employing 77,000+ people in 20+ countries, with key
offices in New York City, Palo Alto, London, and Delhi.
For additional information, contact, [email protected] and visit www.genpact.com/what-we-do/business-services/enterprise-riskcompliance/third-party-risk-management
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© 2017 Copyright Genpact. All Rights Reserved.
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