Refinitiv survey exposes severe lack of due diligence on business supply chains.
New research report shows 43% of third-party relationships are not subject to any form of due diligence checks, as companies struggle to monitor third-party risks and protect themselves and their supply chains in the post COVID-19 environment
With an average of nearly 10,000 third-party relationships to deal with, many organizations are not fully carrying out due diligence at either onboarding or ongoing monitoring stages. This is compounded by competitive pressures, greater globalization and increasingly complex supply chains. Despite greater regulation and stronger enforcement action, the report finds that organizations are struggling to gain visibility over third-party risks and take appropriate action.
COVID-19 is set to have a substantial impact on the risk landscape, particularly in terms of supply chain and third-party risk. Global supply chains can create competitive advantages for businesses and cut costs for consumers, but they also carry significant risk. If businesses do not have clear insight into all levels of their supply chains and the ability to conduct due diligence quickly and easily, they cannot hope to mitigate or manage their risk.