LONDON, Feb. 21, 2020 /PRNewswire/ -- The Red Flag Group®, a leading compliance technology and due diligence firm, has published a report to underline how recurring due diligence can benefit acquiring and target companies and is a vital component of an overall ongoing monitoring strategy around managing third party risks.
The report points out that, while it is just one component of an overall ongoing monitoring strategy around managing third party risks, renewal due diligence is vital.
"Recurring due diligence gives organisations the chance to let their third parties know that they are being observed together with their activities, and this can encourage ethical conduct. And, of course, renewals offer the significant benefit of providing companies with an effective defence in the event of third party misconduct," said Scott Lane, CEO and Chairman of The Red Flag Group.
Any organisation that sells through channel partners needs to have a due diligence programme in place through which it conducts proactive integrity analyses on partners (e.g. suppliers and service providers, agents and intermediaries, resellers, distributors and other associated third parties) prior to engaging them, as well as throughout the life of the engagement. Yet many organisations are known to only conduct due diligence and formal compliance checks when a new partnership is established, or a first contract is signed.
"Needless to say, it's high time to acknowledge that compliance is not linear but requires a regular assessment and improvement of a programme. Renewal due diligence is different from onboarding due diligence and needs to be treated as such," said Scott Lane.
The full report can be downloaded at https://insights.redflaggroup.com/whitepapers/special-report-recurring-third-party-due-diligence.
About The Red Flag Group®
For almost 15 years it has been a main goal of The Red Flag Group® to help companies select the best customers, suppliers and business partners by providing data, intelligence and rating solutions across all industries and countries. With our curated data, intelligence and rating solutions, our clients make Better Decisions when selecting companies and people they engage with, allowing them to not only meet their own statutory compliance obligations, but to also drive up standards and improve society's future outlook.
We believe that organisations recognise their critical role in ending corruption, money laundering, and child and forced labour with a commitment to the highest standards of ethics, compliance and social governance to make a significant contribution in society. For more information, go to http://www.redflaggroup.com.
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