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Empowering Resilience Through Risk Management: The Path to DORA Compliance in the Financial Sector

 “In the financial services arena, compliance isn’t just a mandate or a regulation – it is a commitment to trust and resilience.”  ~Sri Gopinath, TYS VP of Customer Success, Delivery & Professional Services

As the January 2025 deadline for the European Union’s Digital Operational Resilience Act (DORA) rapidly approaches, financial institutions must shift their focus to a crucial element of compliance: third-party risk management. Under DORA, financial entities must demonstrate resilience not only in their internal operations but also across their third-party relationships, which are critical to their overall operational resilience. 

DORA is set to impact a broad range of financial services providers, including banks, investment firms, insurance companies, and even non-traditional entities like crypto-asset services. But perhaps the most challenging and far-reaching provision of DORA lies in its stringent expectations for how firms manage the risks introduced by their third-party service providers. 

Why Third-Party Risk Management is Key for DORA Compliance

Third-party providers—whether cloud service providers, data centers, or even credit rating agencies—are essential to financial institutions’ day-to-day operations. As the industry continues to embrace digital transformation, the reliance on external suppliers grows. However, with this increased reliance comes increased risk and potential vulnerabilities. A disruption or breach from a third-party provider can have far-reaching consequences, impacting everything from customer trust to regulatory penalties. 

DORA recognizes this risk, establishing strict guidelines on how firms must monitor and manage their third-party relationships maintain high standards of operational resilience and reduce the risk of disruptions. The new regulation requires financial institutions to:

 

  1. Identify Critical Third Parties: Financial institutions must assess their external service providers and categorize them based on their importance to business continuity. This includes not just core services like IT infrastructure but also suppliers involved in regulatory reporting, data management, and cybersecurity. 
  1. Ensure Resilience of Third Parties: DORA mandates that financial entities must conduct thorough due diligence and establish contractual obligations with third-party providers to ensure that their suppliers meet operational resilience requirements. This includes requiring them to have robust cybersecurity measures, disaster recovery plans, and data protection protocols in place. 
  1. Continuous Monitoring and Risk Assessment: It’s no longer enough to simply vet third parties during the initial contracting and onboarding process. Under DORA, ongoing monitoring is essential to ensure compliance with contractual requirements and manage risks appropriately. Financial institutions must continuously evaluate the risk posture of their third-party providers, ensuring that they remain compliant with security, operational, and regulatory standards throughout the partnership. 
  1. Incident Reporting, Contingency Planning and Testing: DORA also demands that institutions have clear, actionable contingency plans in place in case of a third-party breach or disruption caused by third party service provider incidents. These plans must be regularly tested to ensure their effectiveness in maintaining operational continuity, and include provisions for quickly identifying and reporting incidents, as well as measures for minimizing the impact of any disruptions. 

The Challenge of Managing Third-Party Risk

Managing third-party risk is not a new challenge for financial institutions, but the scope of DORA’s requirements presents a unique opportunity—and challenge—for organizations. Ensuring compliance will require significant effort and coordination across multiple departments and functions. More importantly, it will demand comprehensive digital tools that can support continuous third-party monitoring, facilitate efficient onboarding processes, and track compliance across a range of standards. 

Here, digital platforms like Trust Your Supplier (TYS) can be a game-changer. TYS enables organizations to streamline the discovery, onboarding, and compliance management of third-party suppliers, all while ensuring that supplier risk is continuously assessed through automated workflows.  

By leveraging TYS’s third-party risk management capabilities, financial institutions can gain visibility into the operational resilience of their critical suppliers, monitor ongoing compliance with DORA’s stringent requirements, and quickly identify any potential gaps in their third-party risk management strategies. 

Preparing for DORA Compliance: Key Steps Financial Institutions Can Take

To successfully prepare for DORA’s third-party risk management requirements, financial institutions should: 

  1. Conduct a Third-Party Risk Assessment: Review all third-party relationships and identify which suppliers are critical to business continuity. This should include both direct suppliers and those providing outsourced services for your critical functions. 
  1. Strengthen Contracts and Agreements: Ensure that all contracts with third-party providers include provisions for operational resilience, including disaster recovery, cybersecurity, and compliance monitoring. 
  1. Implement Continuous Monitoring and Reporting: Implement digital tools that enable real-time monitoring of third-party risk. This should include tracking supplier financial health, cybersecurity posture, and any relevant regulatory compliance requirements. 
  1. Establish Incident Response and Contingency Plans: Develop and implement contingency plans that include clear protocols for handling disruptions caused by third-party service providers. 

How Trust Your Supplier (TYS) Helps with Third-Party Risk Management

Trust Your Supplier (TYS) offers a comprehensive solution for managing third-party risk under DORA. The platform enables financial institutions to streamline the discovery and vetting of suppliers, while also maintaining a continuous watch on supplier compliance and risk.  

With TYS, you can: 

  • Pre-qualify and Assess Third-Party Suppliers: Discover new, trusted suppliers with integrated risk data and pre-qualification tools. TYS makes it easier to evaluate and select suppliers that meet your organization’s specific resilience and compliance needs.
  • Continuous Monitoring: Stay informed about your suppliers’ financial viability, cybersecurity posture, and overall risk through automated updates and reports. TYS helps you ensure that your critical third-party providers continue to meet DORA’s evolving requirements. You can conduct regular audits and questionnaires as part of an ongoing monitoring campaign to ensure they remain compliant with DORA.

  • Streamline Compliance Management: TYS’s digital workflows automate the monitoring of regulatory compliance, reducing manual effort, mitigate human error and maintain an audit trail of documentation and approvals to achieve compliance.   

The Path Forward: Building a Resilient Third-Party Ecosystem

As DORA compliance looms large on the horizon, financial institutions have a critical opportunity to enhance their third-party risk management strategies. By addressing the risks posed by external suppliers, financial entities can build a more resilient, digitally enabled operational model that stands up to the challenges ahead. 

Taking action now—not just to comply with DORA, but to build a sustainable third-party risk management framework—will ensure that financial institutions can not only survive but thrive in an increasingly complex and regulated environment. 

Get Ready for DORA with Trust Your Supplier

Third-party risk management will play a pivotal role in your DORA compliance strategy. Learn how TYS can help streamline your supplier risk assessments, automate compliance workflows, and provide real-time visibility into your third-party relationships. Contact us today to schedule a demo and see how our platform can help you stay ahead of regulatory requirements and strengthen your operational resilience. 

April Harrison Blog, Financial, Risk & Compliance, Supply Chain 0 Comments , , ,

TEST- EU Deforestation Law: Key Updates and Supply Chain Impacts 

The European Union’s new Deforestation Law (EUDR) is making waves worldwide. Set to take effect on December 31, 2024, this regulation will impose strict requirements on products like coffee, cacao, and palm oil to ensure they do not originate from recently deforested areas. Companies trading with the EU will need to verify the deforestation status of their goods, adding layers of compliance.
However, the EUDR has sparked global debate. The United States is pushing for a delay, citing concerns over the regulation’s far-reaching consequences, but the EU remains firm in its timeline, with any postponement seen as unlikely.
For supply chains, this new law signals a substantial shift. Increased compliance measures will raise costs for goods entering the EU and could lead to disruptions as companies adjust to meet the new requirements. Organizations trading in the region should start preparing for these changes to avoid future bottlenecks and compliance issues.
How Trust Your Supplier (TYS) Can Help
TYS’s comprehensive compliance questionnaires can ease the burden of these new requirements. By digitizing and automating the verification process, TYS helps businesses collect and manage critical information from suppliers regarding their deforestation practices. This streamlined approach ensures that your suppliers meet EUDR standards, reducing the risk of non-compliance and allowing for quicker, more efficient supply chain adjustments. With real-time monitoring and proactive alerts, TYS empowers your team to stay ahead of evolving regulations and ensure your products are ready for the EU market.
Prepare now and leverage TYS to navigate the complexities of the EUDR with confidence.

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Santosh Kumar Blog, ESG, Geopolitical Issues, Risk & Compliance 0 Comments , , ,

EU Deforestation Law: Key Updates and Supply Chain Impacts 

The European Union’s new Deforestation Law (EUDR) is making waves worldwide. Set to take effect on December 31, 2024, this regulation will impose strict requirements on products like coffee, cacao, and palm oil to ensure they do not originate from recently deforested areas. Companies trading with the EU will need to verify the deforestation status of their goods, adding layers of compliance.
However, the EUDR has sparked global debate. The United States is pushing for a delay, citing concerns over the regulation’s far-reaching consequences, but the EU remains firm in its timeline, with any postponement seen as unlikely.
For supply chains, this new law signals a substantial shift. Increased compliance measures will raise costs for goods entering the EU and could lead to disruptions as companies adjust to meet the new requirements. Organizations trading in the region should start preparing for these changes to avoid future bottlenecks and compliance issues.
How Trust Your Supplier (TYS) Can Help
TYS’s comprehensive compliance questionnaires can ease the burden of these new requirements. By digitizing and automating the verification process, TYS helps businesses collect and manage critical information from suppliers regarding their deforestation practices. This streamlined approach ensures that your suppliers meet EUDR standards, reducing the risk of non-compliance and allowing for quicker, more efficient supply chain adjustments. With real-time monitoring and proactive alerts, TYS empowers your team to stay ahead of evolving regulations and ensure your products are ready for the EU market.
Prepare now and leverage TYS to navigate the complexities of the EUDR with confidence.


Get In Touch
April Harrison Blog, ESG, Geopolitical Issues, Risk & Compliance 0 Comments , , ,

Enhancing Transparency and Reliability in the Food Manufacturing Supply Chain

Ensuring the highest standards of transparency and reliability in the food manufacturing supply chain is paramount. Consumers today are more conscious than ever about where their food comes from and how it’s produced. Every step in the supply chain needs to be meticulously monitored from farm to table to ensure safety, quality, and compliance. Trust Your Supplier (TYS) offers a cutting-edge blockchain-based solution that transforms supplier and risk management for food manufacturers, ensuring unparalleled transparency and reliability.

The Challenge: Complexity and Risk in the Food Supply Chain
Food manufacturing companies face a unique set of challenges in their supply chains. With numerous suppliers, from farmers to packaging companies, the complexity is immense. This complexity often leads to issues such as: 

  • Lack of Visibility: Difficulty in tracking supplier information and credentials 
  • Compliance Risks: Ensuring all suppliers adhere to food safety regulations and standards 
  • Inefficiencies: Manual processes can lead to errors and delays
  • Risk Management: Predicting and mitigating risks related to supplier reliability


The TYS Solution: Blockchain-Based Supplier Information Management
Trust Your Supplier addresses these challenges head-on with our innovative blockchain-based platform, providing a single source of truth for supplier information and updates. Here’s how TYS enhances transparency and reliability in the food manufacturing supply chain: 

  1. Immutable Records and Transparency: Blockchain technology ensures that every update or change to supplier information is immutable, meaning it cannot be altered or deleted. This immutability guarantees that all information about suppliers is accurate and tamper-proof, providing complete transparency to food manufacturers.
  2. Comprehensive Supplier Profiles: TYS supplier profiles are owned by each supplier, and firmographics are aggregated with risk intelligence data. These profiles are continuously updated with real-time data, ensuring food manufacturers have the most current information to make informed decisions. This comprehensive visibility helps identify and mitigate risks before they become issues.
  3. Enhanced Compliance and Approval Workflows: With TYS, food manufacturers can automate compliance checks and approval processes. TYS approval workflows streamline validating supplier information and compliance documents.
  4. Real-Time Monitoring and Updates: TYS offers real-time monitoring of supplier information, including risk data and updates to firmographics or documents such as certifications and tax documents. This ensures that food manufacturers are always aware of the current status of their suppliers and can react swiftly to any changes.
  5. Predictive and Prescriptive Insights: Leveraging advanced analytics, TYS reports provide insights into potential risks within the supply chain. By analyzing historical data and trends, users can mitigate these risks to maintain a steady and reliable supply chain.
  6. Efficient and Trustworthy Data Exchange:  By using a distributed ledger, all parties have access to the same information in real-time, reducing misunderstandings and errors. This transparency fosters trust and collaboration among suppliers and internal stakeholders. 


Use Case: Streamlining Supplier Management
Consider the scenario where a food manufacturing company sources ingredients from multiple suppliers. With TYS, each supplier’s information, including compliance questionnaires, certifications, and risk assessments, is recorded on the blockchain. As suppliers update their documents or firmographics, TYS provides real-time alerts to the food manufacturer, ensuring they always have the most up-to-date information to make informed decisions. 

Maintaining transparency and reliability in the food manufacturing supply chain is not just a regulatory requirement but a critical differentiator. Trust Your Supplier provides a reliable blockchain-based solution that helps food manufacturers manage compliance checks, real-time monitoring, and supplier information effectively. By offering comprehensive supplier profiles and streamlined approval workflows, TYS supports food manufacturers in confidently managing their supplier relationships.  

Reach out to discuss how you can enhance the integrity and efficiency of your supply chain with TYS.

 


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April Harrison Blockchain, Blog, Consumer Products, Risk & Compliance, Risk Management, Supplier Information Management, Supply Chain 0 Comments , , , ,

TYS Podcast S2E4 – Unraveling the Global Tapestry of Politics, Economics, and Supply Chains

In this episode, we dive deep into the intricate web of global politics, economics, and supply chains, unraveling the complexities that shape the landscape of modern business. Join us as we explore pressing questions and uncover insights that shed light on the evolving dynamics of the global risk environment.

The volatile nature of today’s global political and economic climate reverberates across industries, making it imperative for supply chain and procurement professionals to stay vigilant. Every shift in geopolitics or economic policy can send ripples through the supply chain, impacting everything from sourcing strategies to operational efficiency.

So, why does this matter for supply chain and procurement? Simply put, businesses operate in a connected world where disruptions in one region can have far-reaching consequences. Whether it’s trade disputes, sanctions, or geopolitical tensions, these factors can disrupt supply chains, increase costs, and affect business continuity.

Tracking these issues requires a comprehensive approach, leveraging a mix of data sources, analytics, and expert analysis. By monitoring key indicators, companies can anticipate risks and identify opportunities, enabling proactive decision-making.

To gain deeper insights into these challenges, we asked the experts at Prism about the emerging trends in global politics and economics. Watch our conversation with them and read our blog, co-authored by TYS and Prism, on how the Swiss climate ruling reshapes supply chains and risk management.

April Harrison Blog, Data Privacy & Security, Geopolitical Issues, Podcast, Risk & Compliance, Supplier Information Management 0 Comments , , , , , ,

Navigating Geopolitical Shifts

How the Swiss Climate Ruling Reshapes Supply Chains and Risk Management

by Michelle Armstrong, TYS Global VP of Value Engineering and George Coe, Prism Cofounder & Partner

On April 9, 2024, a Swiss Court determined that the Swiss government had a legal obligation to combat climate change, based on European Human Rights Law. The case will have significant implications for ESG and supply chains. 

This adds to a wave of climate litigation, against both countries and companies, but stands as a landmark ruling due to the use of human rights law broadly, and the European Convention on Human Rights (ECHR) specifically, for which a precedent is now set for all 46 countries that are signatories. 

The implications go far beyond the direct ruling. TYS partner, PRISM, a geopolitical risk advisory firm, breaks down the issues for supply chain leaders to watch in three categories. 

Risk of rapid regulatory expansion: the ruling implies that governments have an obligation to take appropriate measures to meet their stated climate goals. Current policy in almost every country comes far short of stated climate goals, such as the Net Zero by 2050 targets set in most Western economies. Legal obligations to put in place policies that match stated goals would mean transformative new climate regulations that would require far larger changes to supply chains than current law. This could range compliance burdens like greater disclosures, but the ruling implies effort aimed more directly at cutting climate risk, making it more likely that direct supply chain costs would be imposed by policies that require renewables investments, more ambitious emissions reductions, reduction of high emissions imports, and other more fundamental changes. 

More countries: a range of other cases exist using human rights and other laws. Other countries, from France to Portugal to India and beyond must be watched for similar precedent-setting rulings that would expand the implications of this legal framework beyond Switzerland and the ECHR. 

Direct corporate lawsuits: the ruling accelerates the impact of climate litigation from activists, which has also been aimed directly at companies. It can be expected to boost efforts to sue companies directly for failures on climate change, creating financial risk to companies and their suppliers, if more lawsuits are successful. 

More broadly, the case could act as a catalyst for enhanced international cooperation. By framing climate action as a human rights imperative, it may lead to a concerted effort among nations to standardize environmental policies and regulatory frameworks, especially at a time when human rights and environmental goals are being pursued in tandem in supply chain regulations like the EU’s CSDDD. 

The case itself is a crucial moment in the use of litigation by climate activists, bringing together years of work at the intersection of environmental advocacy, human rights, legal strategy, and political dynamics. If a precedent has truly been set that expands to more countries, we can expect a rapid rise in transformative climate action, rather than just stated goals, in the coming years. 

Learn more about our TYS partner Prism.

Read more about the landmark Swiss case.

#TYS #Prism #ClimateLitigation #ESG #HumanRightsLaw #RegulatoryExpansion #CSDDD #Sustainability #GeopoliticalRisk 

April Harrison Blog, ESG, Geopolitical Issues, Risk & Compliance, Risk Management, Value Engineering 0 Comments , , , , ,

Trust Your Supplier at EcoVadis SUSTAIN 2024

A Thankful Reflection and Path Forward

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Last week, Trust Your Supplier (TYS) joined leaders in sustainability at EcoVadis SUSTAIN 2024, diving into the complexities of compliance and sustainable practices. We’re grateful to EcoVadis and all participants for a forum rich in insights and collaborative spirit.

Key Insights: Simplifying Compliance
The call for simplification in the face of growing regulatory complexities was loud and clear. Our blockchain-based solution’s role in streamlining compliance and fostering transparency across supply chains was more relevant than ever. This reinforces our mission to make navigating compliance easier for everyone.

Our Commitment to Guidance and Collaboration
The discussions at SUSTAIN 2024 have strengthened our commitment to providing innovative solutions and expert guidance. Emphasizing collaboration, we’re energized to work alongside industry peers and businesses to tackle sustainability and compliance challenges together.

Looking Ahead with Optimism
SUSTAIN 2024 was a powerful reminder of our shared goals for a sustainable future. Trust Your Supplier is dedicated to leading the charge in simplifying compliance, ensuring it’s a stepping stone rather than a hurdle. We thank everyone involved for the inspiration and look forward to continued collaboration.

As we move forward, let’s carry the momentum from SUSTAIN 2024 to create a sustainable, compliant world where businesses thrive together.

Interested in seeing how the EcoVadis integration works in TYS? Book a meeting!

April Harrison Blog, ESG, Events, Risk & Compliance, Value Engineering 0 Comments , , , , ,

Navigating Climate Disclosure

TYS Leads the Way Amid Regulatory Evolution

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In the ever-evolving landscape of climate disclosure, recent adjustments by the U.S. Securities and Exchange Commission (SEC) have prompted a reevaluation of reporting requirements, leaving many businesses in a state of uncertainty. This shift underscores the importance of adaptable solutions like Trust Your Supplier (TYS), a trailblazer in blockchain technology, which continues to serve as a guiding light for companies navigating the complex web of regulatory compliance, including alignment with European directives. 

The Changing Face of SEC Regulations: The SEC’s recent decision to revise climate-disclosure rules omitted a proposed mandate for companies to report Scope 3 emissions, concerning emissions from supply chains and product usage by customers. While this alteration may provide temporary relief, TYS recognizes the ongoing challenges that businesses encounter in this swiftly transforming regulatory environment. 

TYS – A Pillar of Compliance: Trust Your Supplier understands that compliance is not a uniform journey for all. Leveraging innovative blockchain solutions, TYS empowers businesses to seamlessly adapt to evolving regulations. The transparency and efficiency afforded by blockchain technology enable continuous monitoring, historical analysis, and predictive insights, fostering a culture of compliance excellence. 

Addressing Scope 3 Emissions: Scope 3 emissions, which include indirect carbon emissions, present a formidable obstacle for companies. TYS acknowledges the complexities involved in quantifying these emissions, particularly amid escalating global pressure to reduce carbon footprints. With TYS, organizations can streamline the tracking of Scope 3 emissions, transforming challenges into opportunities for sustainable practices. 

Embracing Global Standards: While the SEC’s decision may alleviate concerns for some, other jurisdictions such as the European Union and California are steadfast in advocating for comprehensive climate-related disclosures. TYS recognizes the significance of aligning with global directives and stands prepared to assist companies in meeting diverse reporting obligations across various regions. 

Facilitating Supplier Collaboration: Central to Trust Your Supplier’s ethos is its collaborative ethos. TYS facilitates seamless communication and data exchange between businesses and their suppliers. As demands for Scope 3 data intensify, TYS serves as a conduit, aiding companies in acquiring the necessary information to fulfill reporting requirements. 

Looking Ahead: While the SEC’s decision offers a brief respite, the journey towards comprehensive climate disclosure persists. Trust Your Supplier remains steadfast in its commitment to empowering businesses, equipping them with the tools needed to navigate the evolving landscape of compliance. 

In a regulatory environment characterized by fluidity, Trust Your Supplier emerges as a trusted ally for businesses navigating the intricacies of climate disclosure. With TYS’s blockchain-driven solutions, companies can not only meet existing compliance mandates but also seamlessly adapt to future changes, ensuring a sustainable and transparent approach to supplier and risk management. Stay tuned for further insights from Trust Your Supplier as we continue to pioneer innovation at the intersection of blockchain technology and regulatory compliance. 

Referenced WSJ Article – The SEC Watered Down Its Climate Reporting Requirements: Here’s What That Means for Companies

Discover how Trust Your Supplier can revolutionize your supply chain security. Contact us today to learn more or to schedule a demo. 

April Harrison Blockchain, Blog, ESG, Risk & Compliance, Value Engineering 0 Comments , , , ,

TYS Podcast S2E3 – Unlocking the Power of Master Data Management

In the ever-evolving landscape of business operations, one concept stands out as the cornerstone of success: master data management (MDM). Recently, Trust Your Supplier (TYS) hosted a thought-provoking episode of the TYS Podcast, delving deep into the intricacies of MDM, financial information, compliance, and data privacy. This enlightening discussion shed light on the challenges and opportunities facing businesses today and provided invaluable insights for industry professionals. 

The conversation kicked off with an exploration of the “core theater” essential for operational success, encompassing individuals, suppliers, transportation, and data privacy. Participants emphasized the critical importance of maintaining master data governance throughout the supply chain lifecycle, citing real-world examples of companies teetering on the brink of bankruptcy due to lapses in data management. This sobering revelation underscored the profound implications of master data on individual businesses and entire supply chains, making it a non-negotiable aspect of organizational strategy. 

As the discussion unfolded, participants turned their attention to recent trends and innovations in financial information provision and MDM. They highlighted the adoption of technology for financial crime prevention and the challenges posed by the quality of customer and third-party data. The consensus was clear: high-quality, accurate, and complete information is paramount for enhancing customer experiences and detecting suspicious behavior, making MDM indispensable for achieving business objectives and ensuring compliance. 

The conversation then shifted gears to address the complexities of monitoring and verifying data across different jurisdictions, particularly in light of evolving compliance regulations. Participants stressed the need for globally sourced, accurate, and consistent data to support robust risk assessment and compliance efforts. The impact of mergers and acquisitions on MDM and compliance was also explored, with a focus on identifying beneficial owners and understanding complex family structures. 

A particularly poignant moment in the discussion arose when the intersection of data privacy regulations like GDPR with compliance requirements was examined. Participants acknowledged the conflicting nature of Know Your Customer (KYC) and GDPR regulations, highlighting the need for companies to navigate these regulations effectively while safeguarding sensitive information. 

Further insights were shared on the challenges of continuous auditing of information and the importance of monitoring data changes. Participants underscored the necessity of providers offering robust monitoring capabilities and event-driven updates, emphasizing the role of compliance officers in reviewing critical changes. 

The conversation culminated in a discussion on the transformative role of AI and machine learning in automating manual processes and ensuring data quality. Participants stressed the importance of high-quality data as the foundation for AI applications and the need for data cleansing to avoid exacerbating existing problems. 

In conclusion, the episode provided invaluable insights into the challenges and opportunities in MDM, compliance, and data privacy. It underscored the critical role of accurate and high-quality data in driving business success and ensuring regulatory compliance. As businesses navigate the complexities of today’s landscape, embracing robust MDM practices and leveraging innovative technologies will be key to staying ahead of the curve. Trust Your Supplier continues to lead the conversation in thought leadership, empowering industry professionals to navigate the ever-changing business landscape with confidence and agility. 

April Harrison Blog, Data Privacy & Security, Podcast, Risk & Compliance, Supplier Information Management 0 Comments , , , , ,

TYS Podcast S2E2- Mitigating Financial Risk to Unlock Added Value

In today’s fast-paced business environment, companies face numerous challenges in managing financial risk effectively while unlocking added value from their procurement processes. To gain valuable insights into this critical area, we turn to procurement experts Stephen Brandt & Chad Hill from Trust Your Supplier (TYS), and Eric Evans from RapidRatings, who share their wealth of experience and knowledge in the field. 

Stephen Brandt, a value engineer at Trust Your Supplier, emphasizes the importance of understanding regulatory goals and compliance risks in procurement. With 15 years of experience in the industry, Stephen highlights the need to uncover value while mitigating financial risks effectively. 

Chad Hill, the Chief Revenue Officer at Trust Your Supplier, underscores the significance of leveraging technology to enhance supply chain management. With over 17 years of experience in procurement technology, Chad emphasizes the importance of collaboration and amplifying the mission of delivering value to the market. 

Eric Evans, a seasoned expert with 20 years of experience in data risk and compliance, provides valuable insights into the role of predictive analytics in managing financial risk. As a partner at Rapid Ratings, Eric discusses the impact of rising interest rates and leveraged debt on companies, particularly in the wake of the COVID-19 pandemic. 

One of the key challenges highlighted by Eric is the need to assess the financial health of critical relationships within the supply chain. By segmenting companies based on their criticality and leveraging predictive analytics, organizations can gain deeper insights into potential risks and opportunities. 

Furthermore, Eric emphasizes the importance of continuous monitoring and due diligence in supplier onboarding processes. With the help of platforms like Trust Your Supplier, organizations can customize their monitoring strategies to align with their specific needs and priorities. 

Chad echoes the importance of resilience in today’s business landscape, emphasizing the interconnected nature of financial, operational, and environmental risks. By leveraging technology and expert insights, organizations can better anticipate and mitigate potential risks, ensuring long-term sustainability and growth. 

In conclusion, mitigating financial risk in procurement requires a holistic approach that integrates technology, expertise, and strategic partnerships. By leveraging predictive analytics, continuous monitoring, and customized solutions, organizations can unlock added value while safeguarding against potential risks, ensuring resilience and success in today’s dynamic business environment. 

Trust Your Supplier (TYS) is a Small, Minority, and Woman-owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, and historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to manage suppliers and mitigate risks effectively. 

April Harrison Blog, Financial, Podcast, Risk & Compliance 0 Comments , ,