thomson reuters third party risk solutions

Do you really

know who

you’re doing

business with?

THIRD PARTY RISK SOLUTIONS

Trusted data and technology to detect, assess and minimize supplier,

partner and distributor risks.

WHAT ARE THE THIRD PARTY RISKS? Is your organization aware of all the areas of risk they might face when dealing with third parties?

Here is an overview of the main areas of risk and regulation you need to be compliant with.

Environmental Crime

Slavery and Human Rights Abuse

Financial Crime and Sanctions

Bribery and Corruption

Conflict Minerals

Ultimate Beneficial Ownership

BRIBERY AND CORRUPTION

UK BRIBERY

ACT 2010

CANADIAN

CORRUPTION OF

FOREIGN PUBLIC

OFFICIALS ACT

(CFPOA)

1998

US FOREIGN

CORRUPT

PRACTICES

ACT

1977

2015 Multinational

conglomerate fined

$19M for FCPA

violations

2015 Board members of an

international sports

governing body are part

of an ongoing bribery

and corruption

investigation

BRIBERY AND CORRUPTION

The practice of offering something, usually money, or

the abuse of a position in order to gain an illicit advantage or

benefits.

FINANCIAL CRIME AND SANCTIONS

Multinational financial

services company fined

over $5m for sanctions

breach

EU FOURTH MONEY

LAUNDERING

DIRECTIVE

2015

US BANK SECRECY

ACT/ANTI-MONEY

LAUNDERING

1970

Multinational

conglomerate

fined over $200M

for sanctions breach

FINANCIAL CRIME AND SANCTIONS

Any offense involving fraud or dishonesty, misconduct in, or misuse of information relating to a financial market, or handling the proceeds of crime. A trade sanction is a penalty imposed by one nation on to one or

more other nations.

SLAVERY AND HUMAN RIGHTS ABUSE

FMCG Conglomerate used

child labor

UK MODERN

SLAVERY ACT

2015

CALIFORNIA

TRANSPARENCY

IN THE SUPPLY

CHAIN ACT

2010

International

sportswear

manufacturer

caught using

sweatshop

slave labor

SLAVERY AND HUMAN RIGHTS

ABUSE

Slavery includes bonded labor, child

slavery, forced labor or trafficking.

Human rights abuse is the

contravention of the basic freedoms

entitled to humans.

ENVIRONMENTAL CRIME

2013 Not for profit

organization led a

boycott against

companies that

pollute heavily

EU TIMBER

REGULATION (EUTR)

AUSTRALIA ILLEGAL

LOGGING

PROHIBITION ACT

2012

Slave labor is being

used in the fishing

industry in Thailand

ENVIRONMENTAL CRIME

Endangering wildlife, pollution, illegal timber, carbon trade and

water management crime.

CONFLICT MINERALS

OECD DD

GUIDANCE

EU

PROPOSED

REGULATION

2014

US

DODD–FRANK

ACT

2010

CONFLICT MINERALS

Tin, tungsten, tantalum or gold sourced from the Democratic

Republic of Congo or neighboring countries as they have a high risk of

financing militia groups in the

region.

Consumer products

such as mobile

phones and laptops

may contain conflict

minerals.

ULTIMATE BENEFICIAL OWNERSHIP

Ultimate

Beneficial

Ownership

identification is key

to complying with

narrative sanctions

2016 ‘Panama Papers’

reveal that some

companies’ ultimate

beneficial owners had

ties to illicit activity

EU FOURTH

MONEY LAUNDERING

DIRECTIVE

US G8 ACTION PLAN

STATEMENT

ULTIMATE BENEFICIAL OWNERSHIP

The natural person(s) who

ultimately owns or controls the

majority share of a business and

any financial risk they could be

involved in.

• Operational disruptions • Lack of risk-based

approach

• Legal costs • Consumer boycotts • Lack of investors • Brand remediation costs

• Fines from regulators • Reputational damage

DO YOU FACE THE FOLLOWING CHALLENGES? So now we have looked at the risks, these are the challenges businesses face as a result of these risks and not staying on top of them.

• Ever-increasing and

changing regulations

• Proof of due

diligence/compliance

programs

• Immediate response and

contingency plan

Regulatory non-compliance

• Unethical practices

damages an organization’s

reputation

• Growing importance

of corporate social

responsibility

• Employee retention and

satisfaction

Reputational damage

• Enforcement of fines

and/or sanctions due to

non-compliance

• Civil litigation lawsuits

• NGO investigations

Legal action

• Limited budget

and resources

• Lack of a scalable third

party risk program

• Siloed, fragmented

data and systems

• Lack of expertise and

knowledge

Operational inefficiency

Potential consequences:

KEY CUSTOMER NEEDS

What does a risk-based approach

look like?

What risks are associated with a shifting geopolitical

landscape?

What hidden complexities can a global

supply chain contain?

Can I expect accurate and trusted news

and data in a timely manner?

How can I educate staff and third parties

on best practice?

How will this be incorporated with current platforms and preferred

partners?

VISIBILITY IDENTIFY UNDERSTAND

TIMELY DATA EDUCATE INTEGRATE

A RISK-BASED APPROACH TO THIRD PARTY RISK Here are the steps your organization needs to take to mitigate exposure to third party risk. We understand the process of ris k management

and what each step entails. That’s why we are able to support you, every step of the way.

Retrieve/collect

information on

third parties, e.g.

questionnaire

management of

third party

onboarding and

performance.

Supplier

onboarding*

Determine any

geopolitical,

social and

economic

risks associated

with third

parties.

Understanding

the risks

Conduct initial

due diligence by

screening third

parties against

business

relationship risk.

Screening

third parties

against risks

Detailed

background checks on any

heightened risk

individuals or

entities to further

protect against

regulatory and

reputational

damage.

Further due

diligence

required

Continuously

monitor third

parties for any

change in status

and risk levels.

Ongoing

monitoring

Report

(auditable trail)

on third party

risk

management

program for

regulatory

purposes.

Ongoing

reporting

(audit trail)

Roll out

compliance

training program

to internal staff

or third parties.

Train and

educate Y/N

Decision to onboard or reject third party

* We work with preferred partners to provide this.

Supplier

onboarding Understanding

the risks

Screening

third parties

against risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate

WHAT DO YOU NEED TO DO? WHAT IS OUR SOLUTION? HOW DO WE HELP?

Use a Supplier Management Platform

• Automate third party onboarding and integrate

process with current workflow

Work with preferred market-leading

software platform providers to enable

efficient supplier onboarding.

Our data can also, seamlessly integrate

with all major ERP platforms.

Y/N




Supplier


the risks

Screening

third parties

against risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate


Country Risk Ranking

• Understand the geopolitical risk in

which third parties operate

• Access news pertaining to potential

third parties

Covers political, economic and criminal

risks across the world – enabling you to

understand what doing business with

certain countries or jurisdictions might

mean for you.

World-Check

Y/N

Access to up-to-date news on an individual

or entity using our global media coverage

with alerting features.




Supplier


the risks

Screening third

parties against

risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate


World-Check

• Screen against global sanction, enforcement

lists and hidden risks, e.g. bribery and

corruption or slavery

• Identify connections between individuals

and entities who may pose greater risks

• Establish ultimate beneficial ownership

Screen individuals and entities against the

World-Check database consisting of

millions of profiles to help reveal applicable

risks that may be present in business

relationships and networks.

Enhanced Due Diligence

Y/N



Detailed background and integrity checks

on any entity or individual, anywhere.

A global and connected team which leverages,

leading Thomson Reuters assets to manage

third party screening and due diligence

processes on behalf of an organization.


Screening Resolution Service

Supplier


the risks

Screening third

parties against

risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate


Screening Resolution Service • Conduct further investigation when a third

party is flagged as heightened risk

Work with the client to understand attitude to risk and can conduct further due diligence if required.


Y/N

Focus not only on the company, its owners and operations but also on key management and decision-makers to provide insights on any political, criminal or other threat to the business.

Research teams are strategically located around the world, conduct research in multiple local languages and are trained to find hard-to-reach information.




Supplier


the risks

Screening third

parties against

risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate


• Screen, monitor and remediate risks on an

ongoing basis, as risk status and appetites

change

• Extract reports and provide an audit trail to

show proof of due diligence to regulators

Intelligent systems that enable you to continually monitor all saved database entries to provide immediate alerts.


Y/N


Enhanced Due Diligence ongoing monitoring available on client request.

Offers ongoing monitoring where we constantly monitor a batch of names given to us and give regular updates set by the client on the results.



World-Check


Supplier


the risks

Screening third

parties against

risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate


Compliance Learning

• Educate staff and third parties on regulatory

standards, latest policy changes, key

regulatory developments and legislation

• Keep training courses up to date

• Customize training solutions for staff and third

parties, while ensuring participation,

completion and effectiveness

A library of engaging, interactive courses and micro-learnings designed to meet all your compliance training needs.

Course content is powered by world-leading Regulatory Intelligence and is continually updated in response to the latest regulations.

With a full range of customization options, you can manage your training program and keep track of user progress with audit-ready reporting to demonstrate compliance.

Y/N




Supplier

Management

Platform

World-Check

Enhanced Due Diligence*

Country Risk Ranking


World-Check

Compliance

Learning

Supplier


the risks

Screening

third parties

against risks

Further due

diligence

required

Ongoing

monitoring

Ongoing

reporting

(audit trail)

Train and

educate Y/N

*Enhanced Due Diligence ongoing monitoring available on client request.




Partner Data, Platform Subscriptions

and Products Managed Service KEY

WHAT ARE OUR PRODUCTS?

Screen for heightened risk individuals and entities

globally against a risk intelligence database consisting

of millions of profiles, to help uncover hidden risks in

business relationships and human networks.

Thomson Reuters World-Check

Enhanced Due Diligence provides highly detailed

background checks on companies and individuals.

The result is a comprehensive report, which can be

purchased with varying levels of detail.

Thomson Reuters Enhanced Due Diligence

Our Screening Resolution Service carries out initial

screening, remediation and ongoing monitoring on behalf

of our clients who lack the time and resources to screen

and remediate against their third parties.

Thomson Reuters Screening Resolution Service

Country Risk Ranking is a country-focused risk

index that ranks all 247 countries according to their

geopolitical, economic and social risk level.

Thomson Reuters Country Risk Ranking

Our Compliance Learning courses provide practical,

interactive, customizable and cost-effective compliance

training programs, which assist in changing behavior

and supporting a culture of integrity.

Thomson Reuters Compliance Learning

https://risk.thomsonreuters.com/en/products/third-party-risk/world-check-know-your-customer.html

https://risk.thomsonreuters.com/en/products/third-party-risk/enhanced-due-diligence.html

https://risk.thomsonreuters.com/en/products/third-party-risk/screening-resolution-service-denied-party-screening.html

https://risk.thomsonreuters.com/en/products/third-party-risk/country-risk-ranking.html

https://risk.thomsonreuters.com/en/products/compliance-risk/online-compliance-training.html

ABOUT US

At Thomson Reuters, our Third Party Risk solutions help

you detect, assess and minimize potential risks associated

with your suppliers, distributors and partners, and regularly

monitor them for any change in status.

Our solutions combine intelligence, technology and human

expertise to help your organization identify the different

risks you might face in a complex global environment, from

bribery and corruption to sanctions and modern-day

slavery.

With Thomson Reuters you get answers you can trust to

increase your efficiency and growth in your business and

supply chain.

WHY CHOOSE US?

Thomson Reuters research centers are located in all global

regions, covering over 240 countries. Hundreds of research analysts

conduct research in more than 60 local languages, enabling a high

level of accuracy in on-the-ground and local media research.

Human expertise

Our comprehensive reports and audit trails demonstrate

proof of due diligence to regulatory enforcement agencies.

Proof of due diligence to regulators

Proven third party risk mitigation program

Hundreds of corporate clients globally use and rely on our

products to carry out checks and due diligence on their

suppliers and third parties.

Our robust database covers a wide range of country, entity

and individual-level risks with dedicated researchers and

analysts strengthening the value of our assets.

Wide and deep coverage

We provide comprehensive solutions that meet the needs

of each step in the third party due diligence and compliance

workflow.

Well-rounded suite of solutions

The Thomson Reuters brand is the world’s leading source of

intelligent information and World-Check has remained best

in the market for providing high-quality risk intelligence.

Trusted and reliable brand

Reduce operational costs

We eliminate time-consuming duplication of effort and

the need for costly human resources to build the program

and carry out the necessary work.

thomson reuters third party risk solutions

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