53%Governance and risk management leaders reported “some” or “significant” increase in their level of dependence on third parties in the last year1
66%Governance and risk management leaders perceived “some” or “significant” increase in risks inherent in the extended enterprise1
 Deloitte: “Focusing on the climb ahead: Third-party governance and risk management,” Extended enterprise risk management global survey 2018
The primary objectives of a Chief Sourcing Officer (CSO) are to enable a strategic approach to sourcing, while keeping third-party risks in check, and strengthening third-party performance. The CSO is also expected to ensure that third-party management strategies evolve in line with changing consumer demands and technology trends.
Meanwhile, the extended enterprise is growing more complex. Regulatory scrutiny around third-party governance is increasing. And cost pressures are escalating. All these challenges make the CSO’s role a tough balancing act.
To effectively manage the extended enterprise, many CSOs are choosing to build an enterprise-wide third-party governance program that can deliver comprehensive and real-time information on third-party risks, compliance, and performance. With such a program, CSOs can help the business gain the visibility they need to prevent third-party risk incidents, improve resilience, contain costs, and optimize performance. In addition, sourcing and procurement policies can be better aligned to regulatory requirements.
Reduce the number of third-party risk incidents and the potential financial or reputational loss
Lower costs through third-party consolidation, efficient negotiation of contracts, and SLA tracking
Reduce losses by proactively resolving supplier performance issues, and accelerating time to market
Strengthen brand reputation and shareholder confidence by demonstrating the ability to prevent potential third-party disruptions