Research Highlights

  • 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

[1] Deloitte: “Focusing on the climb ahead: Third-party governance and risk management,” Extended enterprise risk management global survey 2018                

Key Objectives

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.

Measurable Outcome

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

MetricStream Solutions Can Help

  • Predict potential third-party risks and their impact on the enterprise

    • Gain insights on emerging risks, their financial and reputational impact, and estimated losses
    • Strengthen business resilience through efficient business continuity planning and execution
  • Embed risk management practices into sourcing and contracting routines

    • Create a culture of risk-aware decision-making that helps the organization avoid potential disruptions and losses
    • Strengthen third-party negotiations using up-to-date information on risk and performance indicators, as well as the status of compliance and issues
  • Enable business / spend owners to maximize the value they receive from third parties

    • Track third-party risks, current and future spend, and alternative third-party options
    • Enhance business agility by accelerating third-party onboarding, termination, and off-boarding
  • Improve business performance by strengthening visibility into third-party performance

    • Gain a comprehensive view of the top-performing third parties that can be leveraged for future projects, investments, and innovations
    • Identify potential performance issues, risks, and service level agreement (SLA) violations through supplier surveys and score cards

Learn more about how MetricStream can help CSOs.

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