No company is an island. Organizations are a complex and diverse system of processes and business relationships. Risk and compliance challenges do not stop at traditional organizational boundaries. Organizations struggle to identify, manage, and govern extended business relationships. The challenge is: “Can you attest that risk and compliance are managed across extended business relationships?” An organization can face reputation and economic disaster by establishing or maintaining the wrong business relationships, or by allowing good business relationships to sour because of weak oversight.
Organizations tend to look at the formation of a business relationship and fail to foresee that issues cascade and cause severe damage to reputation, and exposure to legal and operational risk throughout the ongoing relationship. They make two common mistakes:
