Understand risk & safeguard your reputation

Third-party risk management

Effective third-party risk management (TPRM) encompasses a unified approach to onboarding and risk monitoring across a counterparty network. Get greater visibility into the organizations in your supply chain, so you can understand threats to your business and protect its reputation.

Make decisions with confidence about which suppliers you work with. Moody’s can help unify and automate your approach to supplier due diligence. Bring together people, processes, and technology to create greater organizational transparency and visibility of risk across each tier of your business’ network.

  • Gain visibility of risk associated with third-parties – large and small
  • Unify your approach to supplier onboarding and risk monitoring
  • Identify risks to mitigate the threat of reputational harm

 



Supplier onboarding & risk monitoring

How Moody's can help

Your organization has an imperative to comply with supply chain risk and due diligence regulations; to prevent financial, environmental and social crimes; and to protect itself from association with illegal or unethical practices.

Third-party risk management continues to grow in importance, but it’s also highly complex. Supply chain risk is geographically disbursed, and your vendor network may include organizations of different types and sizes, running into many tiers.

Moody’s solutions are tailored to help your business understand third-party risk.


Regulatory compliance risk
Regulatory compliance risk

Create and maintain supplier risk profiles for key areas of compliance

Company profiles
Company profiles

Verify and enhance the data given to you by third-parties to complete due diligence

Reputational risk
Reputational risk

Access adverse media data about third parties to understand existing and new risks




A Moody's data story

Visualizing supply chain complexity to manage risk


In a changing global economy, managing third-party risk is critical. The ongoing shift in US companies' supply chains away from China towards alternative markets, such as India, Mexico, and Vietnam, highlights how businesses are diversifying their supply chains to try to mitigate risk. However, these shifts can introduce new and different challenges.

Moody’s new Supply Chain Risk data story provides information and insights to help organizations visualize complexities in today’s world of interconnected risk. Explore the data story today, and if you have any questions, please get in touch any time. 




Tailored solutions

Digitally transform due diligence

Develop a supplier due diligence solution that’s flexible and tailored to your business.

Digitally transform your risk policies for third-party onboarding and risk monitoring processes. Unify due diligence with a comprehensive workflow of compliance checks for AML, sanctions, fraud, corruption, and more.

Integrate Moody’s award-winning data sets to verify third parties, large or small, anywhere in the world. And make risk-based decisions with greater corporate transparency.


Digitally transform risk policies, create a workflow of checks, and collaborate on cases

Access powerful comparable data on private companies with information on +489 million entities worldwide

Curate risk-relevant data into profiles for individuals or entities, from a database with PEPs, sanctions, adverse media news

Get organizational transparency with our unique UBO discovery® tool




Key considerations

Modeling third-party risk management

A model that helps unify people, processes, and technology could create greater visibility over where risks lie.

Here are five factors to think about when creating the right model for supplier due diligence and risk management across your vendor network.



5 factors for effective TPRM


Our findings

Moody’s research into third-party risk management

Moody’s recently carried out primary research with a number of global corporations to delve into their processes and priorities for third-party risk management. 


Specifically, we wanted to find out:
  • What is people’s understanding and awareness of TPRM?
  • How do they approach TPRM and supplier due diligence today?
  • What are the challenges companies face when onboarding and managing suppliers?  
  • What does best practice look like and what steps are taken to mitigate risk?
  • What are corporate customers’ attitudes towards TPRM, openness towards solutions, and perceptions of the benefits of improved monitoring?






We interviewed 41 risk and compliance professionals from leading global corporates on three continents.

We’re pleased to share the findings of our research with you. Download your copy of – Third-party risk management: understanding risks to safeguard reputations.





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"Businesses want to protect their reputations, maintain compliance, and look for competitive advantage in their third-party networks. It’s a challenge we recognize."


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Webinar

Meeting the rising tide of third-party risk management to safeguard your reputation


Increasingly complex regulations, financial penalties, and media scrutiny are bringing third-party risk management and supplier due diligence into sharp focus and moving it up on company agendas.

Exploring the questions, priorities, and challenges of third-party risk management, Moody’s commissioned original research into this topic and share the findings of this work in this on-demand webinar.

Paul Nola, of Context Consulting, who conducted the research on behalf of Moody’s, gave a full review of the input from global brands who represent industries from fashion to food to finance.


Following Paul’s debrief, our panel discussed:
  • Priorities driving investment in third-party risk management  

  • Reasons why companies have limited visibility of supply chain risks

  • How to gain visibility into the complex tiers of a counterparty network 

  • How third-party risk management can deliver competitive advantage




Safeguard your reputation



Listen to the podcast

KYC Decoded


Podcast 1
Third-party risk management: knowing the right thing ≠ doing the right thing

Former international sales executive, Richard Bistrong, served time in a federal prison camp after being targeted by a US Department of Justice investigation of a UN supply contract. He now dedicates his life to educating companies on the risks of corruption.

In this episode of KYC Decoded, Richard and Bill Hauserman, Moody’s KYC head of the Financial Crime Compliance Practice for the Americas, talk about:

  • How expertise, data, and technology should work together to push due diligence forward
  • The impact of culture on compliance strategies and mitigating risk
  • And the qualities professionals need to maintain integrity and deal with illicit actors

Podcast 2
Third-party risk management: control, culture, and competitive advantage

Amid sanctions concerns, ESG commitments, and the potential for reputational harm, third-party risk management is a priority. But, if done right, TPRM can also be a competitive advantage.

In this episode of KYC Decoded, Vincent Scales, Director of Third-party Risk Management at Verizon, and Enrico Aresu, Moody’s KYC Compliance and Financial Crime Practice Lead for the DACH region and central eastern Europe, discuss:

  • Context for increased commitment to TPRM
  • Controllable vs. uncontrollable risk in supply chains
  • The difference a compliance culture can make
  • Gaining advantage with Governance Risk and Compliance (GRC) platforms




5 steps in supplier due diligence

Five steps in supply chain due diligence

Source: Moody's


Get our report on supply chain due diligence



More resources

Supplier risk management resources

Moody’s has resources on supplier risk management to help you unify your approach to the problem and gain visibility over risk in your supply chain to protect your business and its reputation. Read on and get in touch if you have any questions.


To assess and prioritize supply chain risks, we recommend creating a risk map. A risk map allows you to decide on your risk tolerance level and focus mitigation efforts.


Your supply chain can provide early warnings of a suppliers’ financial viability, as well as showing the other risks partners could expose. Read more in this blog.


Your supply chain has many risks. How do you prioritize them, and how can you tell if your risk mitigation strategy is working? Check out this article.




Get in touch

Request a demo

Get in touch to discuss your approach to supplier due diligence – we would love to talk to you.