White paper will help companies build due diligence programmes to minimise risk from non-compliance with FCPA
SAN FRANCISCO and HONG KONG, July 28 /PRNewswire-Asia/ -- The Red Flag Group, a leading compliance advisory, due diligence and technology firm, announces today the publication of its latest thought leadership to help companies build best-in-class due diligence programmes and minimise
third-party compliance risks.
Entitled "Best Practices in Conducting FCPA/Anti-Bribery Due Diligence", the white paper provides step-by-step guidance for companies building a comprehensive third party compliance programme, from gaining commitment from all tiers of an organisation, through to assessing risks, identifying the appropriate type of due diligence, and monitoring. The report also seeks to help companies navigate the different due diligences investigation choices available to them, from reviews of politically-exposed-persons watch-lists, corporate registries, and litigation records, to site visits, interviews, and reviewing the third-party's policies and procedures. Finally, the report includes real life examples, FAQs, charts, and tips to help companies build due diligence programmes that are tailored to their particular risk profiles and business needs, and make use of industry best practices.
"All too often, companies take a reactive approach to conducting due diligence on third parties they do business with. They may see best-in-class competitors conducting due diligence on their distribution channel, and institute their own programme aping that, out of a sense of being left behind," said James Walton, Customer Advocate at The Red Flag Group and a
co-author of the white paper.
"The problem with that approach is that it fails to take into account the fact that each company has its own appetite, attitude, and tolerance for risk. This means that the way in which different companies conduct due diligence to address their unique risks will also be different, even if they are in the same industry," he said. There are also many other reasons why third party due diligence programmes fail, Mr Walton added. This includes a lack of commitment on the part of stakeholders, lack of a clearly defined purpose, lack of resources, or poor selection of due diligence provider. Companies will need to avoid such common mistakes if they are seeking to build a successful due diligence programme that helps minimise the risk from third parties -- whether they be suppliers and service providers, agents, or resellers and distributors, he said.
Mr Walton added that a comprehensive third party due diligence programme that is aligned to a company's risks and business objectives not only reduces the risk that its distributors or resellers engages in illegal acts such as bribery, but can also expose the company to a range of benefits from strengthening risk management in its sales channel, to increasing margins and providing better pricing control, providing better safety to consumers and end-users, and increasing protection to the corporate brand.
Scott Lane, CEO for The Red Flag Group and also co-author of the report, said: "Not only does The Red Flag Group have extensive experience providing FCPA and anti-bribery due diligence to Fortune 500 companies, but our offices in emerging markets around the world -- including China and the Middle East
-- also mean we have the local knowledge and expertise to provide the type of useful intelligence companies need, in what are considered some of the most challenging places for conducting due diligence. We are well-placed to help companies address a range of due diligence needs, from the provision of update-to-date and accurate due diligence through our due diligence services offerings, to the design, implementation, and maintenance of third-party due diligence programmes through our advisory services."
One company which chose The Red Flag Group is software company Adobe Systems, who conducts due diligences on third parties and business partner around the world -- including the US and key emerging markets -- in deciding whether or not to renew business relationships and grant contracts. "We chose The Red Flag Group's due diligence services because of its clear scope and documented processes, detailed media analysis in local languages, duplicated watch-list searches, as well as their proactive, positive, and professional attitude in providing useful and timely information to help us make crucial business decisions. We are very satisfied," said Mike Ward, director of compliance at Adobe Systems.
The full white paper can be downloaded at: http://www.redflaggroup.com
Notes for editors:
About The Red Flag Group
The Red Flag Group is one of the world's leading independent corporate governance and compliance firms providing thought leadership around compliance to Fortune 1000 companies. Their main goals include helping companies develop and maintain efficient and effective governance and compliance programs in emerging markets, as well as providing professional due diligence services to companies around the world. Their technology solutions are leading edge
-- providing practical web based solutions to manage compliance risks globally. For more information, go to http://www.redflaggroup.com
For media enquiries, please contact:
Jenna Kim
Tel: +852-3185-0729
Email: jenna.kim@redflaggroup.com
SOURCE The Red Flag Group
