Organisations are increasingly reliant upon third-party contractors, vendors and suppliers for their business success. These relationships empower organisations with specialised skill sets and flexibility, but they also increase risk exposure.
While there are a few key challenges inherent in managing third party contractor compliance (and risk), an organisation significantly increases its risk exposure when the contractor compliance management program is run in-house.
Compliance documents such as insurances and licences are verified by administrative staff, document expiry dates are entered into the spreadsheet and copies of the documents are filed. This antiquated approach poses significant risks and costs to the organisation.
This begs the question – how compliant are your contractors?
If your organisation relies on internal methods of verifying a third party’s compliance, the risk of human error and things “slipping between the cracks” is high.
Unless your organisation has a very small number of third party suppliers, it’s almost impossible to effectively manage and track a contractor’s compliance using manual methods.
Documents are expiring all the time and require renewal. Contractor information needs to be regularly updated. These complexities – understandably – can become overwhelming! The administrative burden alone represents a hidden cost to organisations, requiring time-consuming maintenance, storage and filing.
In addition, ensuring your organisation is holding your contractors accountable to every industry standard is a feat in itself. Generic contractor assessments and questionnaires are, by their nature, a one-size-fits-all approach. They can’t be automatically customised based on a contractor’s own specific compliance requirements, and asking irrelevant questions creates a frustrating experience for contractors.
As detailed, in-house compliance management methods face a number of specific challenges. With this in mind, a new trend has arisen whereby organisations are seeking software systems to help verify the compliance of their contractors expertly.
Automated platforms like iPRO offer an intelligent, transparent, real-time solution for compliance monitoring, verification and risk management. iPRO, in particular, assists organisations in defining best practices for contractor management and identifying gaps in their current risk management.