In one case, a potential supplier met all financial requirements to do business with an international corporation in a partnership that would have, theoretically, opened the door to more markets and benefit both parties. The problem? Most of the financial information that was presented was total fiction. A quick, cursory check of the companies financials would not have exposed the fraud because many of the documents were well-made forgeries.
In another case, a different corporation discovered that one of the existing vendors, a key partner in providing petroleum refinery equipment, was outsourcing the work that they claimed to be doing in the our plant, under contract. The parts being manufactured were cheap, shoddy, and being imported from a different country with few controls and little enforcement.
In both of these cases, it was hands-on investigative work that brought the truth to the surface. Experts combed documents and online records, interviewed witnesses and visited the physical locations where from where these deceptions materialised. Thanks to thorough checks and info-gathering on these third-parties, the corporations tied to them were able to distance themselves before they were damaged, either financially or to their reputation, by their relationships.
At CRI Group, we've developed our own exclusive brand of service in this area: 3PRM™, our Third-Party Risk Management strategy, provides a proactive approach to mitigating risks from third-party affiliations, protecting an organization from liability, brand damage and harm to business.
Our experts working in the field establish the legal compliance, financial viability and integrity levels of your company's outside partners, suppliers, customers and other sources worldwide that seek potential affiliations with your business.
In a nutshell, the 3PRM strategy includes a focus on the following:
- Providing third-party risk assessments
- Meeting contracting requirements
- Conducting due diligence
- Providing management oversight
With a network of trained professionals positioned across five continents, our 3PRM services utilize one of the largest multi-national fraud investigation teams the industry has to offer.
The 3PRM strategy is especially critical when your business is performing pre-merger and acquisition research and pre-IPO due diligence, engages new clients, employs, contracts or retains foreign business partners and requires a consistent and audit-worthy AML and anti-corruption compliance program.
If your company hasn't taken a deep look at all of your partnerships and affiliations, the time is now to take that under control. It could save your organisation a lot of headaches down the road.