For most global companies, the ability to identify, assess, and manage risks posed by third parties is challenging enough without having to worry about their extended corporate families. But by ignoring these fourth parties, companies today are increasingly exposing themselves to a whole new level of financial, regulatory, and reputational risk.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...