This article is an excerpt from our recent whitepaper: Is a third party compliance management system worth the investment?
The overwhelming majority of compliance professionals believe that using a system saves them time in administering their third party compliance process.
There are many areas of the compliance process which could benefit from technology but to take just one - over 82% of compliance professionals said that they spend more than 30 minutes following up with third parties every time they are reviewed (although 36% admitted that they spent more than an hour on this element of their programme). If you only spend 30 minutes doing that work and you have a population of 500 third parties that is a huge 33 working days spent on following up with third parties.
Even if this work is done by more junior members of the team, this is an expensive exercise and it is very easy to see how technology can help save time here. A third party compliance management system would allow you to deliver the questionnaire electronically, allow the third party to complete it online and upload soft copies of any documentation that you need, making it easier for them to give you the information you want. Technology will also allow you to set-up automated reminders to help push your third parties through the process to save your compliance team doing that work, removing the need to generate reports, update spreadsheets, send emails and schedule followup calls with all but the most stubborn third parties.
An even clearer example of where time can be saved is in relation to risk rankings. More than 25% of compliance professionals said that ranking their third parties was one of the most time consuming elements of their programme. When setting up the programme, this area requires considerable thought, but once the parameters are set, this is one part of the process which can - and should - be easily automated. The system can generate the risk ranking in seconds and will apply the same logic to all your third parties, driving consistency throughout your system.
By looking at each of the separate stages of your compliance process in detail, it is easy to find other, similar examples of where automation and centralisation would save hours, if not days of time.
Download the full paper here.