Sponsored Product Update: NAVEX Global’s RiskRate 6.0
I am excited to announce a recent product development launch for our sponsor, NAVEX Global, an innovative leader in the ethics and compliance field. We are proud to work with NAVEX Global, a company that works hard to create products that deliver practical solutions for ethics and compliance professionals.
Although third-party risk management is a top concern for many organizations, it is common to hear that companies are still sorting through an overwhelming number of third parties and determining how best to manage their third parties to limit risk. NAVEX Global’s RiskRate Third-Party Risk Management Software delivers a robust solution for a company’s third-party risk management and enterprise due diligence program. RiskRate organizes a company’s third-party risk management program and streamlines the process with centralized onboarding, screening, and continuous third party monitoring.
Notably, RiskRate 6.0, which was just recently released, incorporates a Profile Risk Tool, which allows organizations to apply a scoring and weighting system to uniquely score a third party’s risk profile based on their organization’s top concerns. In other words, NAVEX has developed a tool that will automatically risk rank third parties based on a company’s concerns. This affords companies with the opportunity to efficiently deploy their resources and appropriately allocate attention to the level of risk.
In order to generate a risk calculation, the organization can select various attributes, including Category of Third Party, Contract Amount, CPI Score, Interaction with Government Entities, Financial Risk, IT Security Risk, State-Owned Entity, among others. The company will apportion a score and definition for each unique attribute. For example, the organization will define the various classifications included within the “Category of Third Parties,” such as distributors, agents, suppliers, and consultants, and assign a score to each third party type based on level of risk. This allows for a risk score to be assigned based on the characteristics of each type of third party. Once the scoring has been applied for each attribute, the weighting is assigned to each selected attribute, according to the organization’s needs.
The final step in this process is to assign Profile Risk. This tool allows organizations to assign risk levels based on the aggregate scoring of each attribute and assigned weighting. The organization defines the ranges for low, medium, and high risk. This score is then displayed on each third party record as the Profile Risk. Once a company has set up the initial risk calculation, the scoring proceeds automatically from there.
With RiskRate 6.0, organizations can now clearly see how each third party scores relative to their unique risk scoring criteria, along with the green/yellow/red flag risk rating (reporting reputational screening and monitoring outcomes), and monitoring indicator. All in all, this updated tool provides an organized and efficient means to identify, understand, and mitigate third party risk. We have been impressed with NAVEX Global’s platform and its focus on improving products based on client’s needs and industry developments.
To schedule a demo with NAVEX Global, visit the site here.