Operational risk management has traditionally been defined as the risk which not captured in market and credit risk management programs. Early operational risk programs took the view that if the risk was not financially related, then it was operational.
Operational risk comes in many formats and from many directions, whether internal or from within the supply chain. In recent years, large fines have been imposed on organizations unable to eliminate their exposure. For example, the US Department of Justice, the Munich Public Prosecutor’s Office, and the SEC pursued Siemens AG on FCPA/Anti-bribery violations, which ultimately resulted in $1.6 billion in fines, penalties, and disgorgement of profits.
HICX understands the need to mitigate operational risk through efficient supplier base management. We provide the following solutions:
- Supplier Onboarding – Collect and ensure accuracy of all necessary supplier data
- Supplier Master Data Management – Syndicate and receive supplier information from internal systems to obtain complete visibility
- Supplier Compliance – Publish compliance initiatives, oversee program effectiveness, and stay ahead of noncompliance
- Supplier Risk & Performance Scorecarding – easily define, measure, and mitigate supplier risk in relation to regulatory and compliance requirements