Each business unit owns the risks associated with the contracts they decide to enter into. This is a fundamental principle built into third-party risk management (TRPM) programs. In large organizations, the program's success is highly dependent upon each Business Unit fulfilling their responsibilities.
The Business Unit Structure for Risk Management Success
The business unit needs to ensure they have a suitable organizational structure and resources to fulfill their third-party risk management program responsibilities. This includes having team members trained in specific competencies and adequate capacity based on the level of risk associated with the business unit's third parties and sufficient capacity based on the level of risk associated with the business unit's third parties.
Once the contract is set, the business unit is responsible for the activities and tasks related to owning the relationship ( “relationship management”), including communication, contract, performance, and risk management. Team Members who reside within a business unit who perform relationship management activities comprise the largest internal population of team members who should manage risk due diligence activities with third parties.
SIG University’s Certified Intelligent Automation Professional (CIAP) program is an online certification program for working professionals who seek to become more efficient and free up team resources by automating repetitive, rules-based activities. An investment in the CIAP designation will provide your team with a holistic understanding of Intelligent Process Automation technologies so they can focus on more strategic business objectives.
Outlined here is more information on the benefits of a CIAP designation, as well as a profile of who would benefit from the program.
What is Intelligent Process Automation?
Intelligent Process Automation (IPA) is an evolving set of software technologies that can be used singly or in combination to automate repetitive, rules-based routine tasks. The Intelligent Process Automation technologies are broadly categorized as:
Robotic Process Automation – Handles repeatable, routine and predictable tasks
Cognitive technologies – Have the ability to be trained to read variable inputs and determine what actions to take under different circumstances.
Workflow orchestration – Manages work between different IPA technologies, legacy systems and human workers.
Virtual agents – Use voice or text chat for direct interaction with users.
The key to true Intelligent Process Automation is how to combine the above-mentioned tools to solve end-to-end business problems.
SIG University Certified Supplier Management Professional (CSMP) program graduate Adrienne Westerfield outlines how supplier governance programs and relationships are extremely beneficial to all stakeholders involved and can help drive business success.
What is a governance program? During the SIG University Certified Supplier Management Professional (CSMP) program, while learning unfamiliar governance terminology, I realized I had been involved with creating and establishing various types of governance throughout my career. Supplier governance is a relationship or framework that is mutually agreed upon. Both the company and the supplier benefit from this relationship. The framework can be at a corporate, business unit or contract level depending on the needs and value sought by both parties.
If it is an established relationship that has never been formalized, adding governance will ensure contract compliance. It will mitigate risks for both parties while making sure the objectives of the relationship are met. Over time, the goals for each company may change so that the structure can be re-evaluated accordingly and adjustments made to align with a new direction or specific initiatives. A more structured governance framework will also define the roles and responsibilities for teams, departments and individuals at each company, which will mitigate the risk of any tasks remaining incomplete or done incorrectly.
Adrienne Westerfield, Contract Administrator, Louisville Gas & Electric Company (LG&E)
What is a simple definition of intelligent automation?
Canda Rozier: I think intelligent automation is a fully holistic approach for business transformation that lets companies start to analyze data, provide analytics on the data and deliver digital solutions to optimize business processes and tasks. I think one of the things that has really struck me as I've learned more about and become engaged with intelligent automation is that it's as important to understand what it's not as to understand what it is.
A lot of intelligent automation projects fail or don’t provide results – why?
Lawrence Kane: It's not a panacea, and it really needs to be implemented systemically because it's a program. It shouldn't be a one-off, because you have to look at your tools and processes and how the enterprise creates value and understand where are the places that you want to go and automate. Where are the places you want to stop doing things, where are the areas that you need to change doing something, right?
SIG University Certified Supplier Management Professional (CSMP) program graduate Indre Ciuberke breaks down the importance of the Supplier Relationship Management (SRM) Framework and the four quadrants of SRM communication that adjust the ways of working with suppliers.
When you think about the Supplier Relationship Management (SRM) Framework, it’s not just walking and talking with your Organization partners and having a relationship with them. From my perspective, SRM is based on relationships, however, stressing the communication and information sharing process in the particular relationship. Usually, SRM has corporate attributes such as ensuring the governance, agenda tracking and managing risks associated with the services or products that the supplier provides to the organization.
Every team is focused on bringing value to the organization. SRM can contribute to this is to push the streamlined service delivery by becoming a core internal team in the organization's structure for outsourced service management.
Supplier Relationship Management Team Framework
I have tried to describe the basic SRM as an internal core team framework in the picture above. The idea is based on communication and information flows:
SIG University’s Certified Third Party Risk Management Professional (C3PRMP) program is a globally recognized certification that is the “gold standard” in terms of relevance, scope and content. The C3PRMP program was created by Linda Tuck Chapman, an advisor, educator, author and expert, and is based on her experience and her book, Third Party Risk Management: Driving Enterprise Value (published by the Risk Management Association). You’ll soon learn that investing in the C3PRMP designation is an investment that will enhance your knowledge base and deepen your expertise.
Outlined here is information about the upcoming changes and benefits of your C3PRMP designation, as well as a profile of our students.
What is different about SIG University’s C3PRMP program?
In January of 2020, the duration of SIG University's C3PRMP program was extended from eight weeks to 10 weeks. Multiple-choice review questions at the end of each module will test all students’ knowledge and require a minimum passing score of 80%.
Members of the Global Association of Risk Professionals (GARP) will continue to earn 20 Continuing Professional Development (CPD) credits, GARP’s highest award for a continuing professional development program.
Stacy Mendoza, Managing Editor, Future of Sourcing
SIG University Certified Sourcing Professional (CSP) program graduate Diana Redwine shares her thoughts on the best way to get business stakeholders engaged.
Ugh, here comes procurement, getting in our way again!
In the Tech world, the role of procurement changes with the transition from start-up to a public company. That transition is full of bumps if not addressed with a support mindset.
Somewhere in the timeframe from growth to a public company, experienced procurement talent is engaged to help move spend activities from tactical to strategic. The notion of this is much more grand and idealistic than the reality.
Traditionally, handling contracts, licenses, order forms, etc., have been managed by the person with the need, not necessarily by someone with expertise in contract development and negotiation. With procurement added to their toolkit, the business stakeholders might say, “gosh, it would be nice to hand this off to someone else” or “how do I know this is the best price/terms?”
More likely, they have been advised that a new policy is being implemented that requires procurement involvement. However, in my experience, many stakeholders view procurement as an impediment to progress and do not willingly hand off their contract needs. Hence the need to truly consider this question of just what the stakeholders REALLY need to know about category management.
Diana Redwine, Senior Procurement Manager, Smartsheet Inc.
SIG University Certified Sourcing Professional (CSP) program graduate William DeMarzo shares his perspective on the old sourcing cliché “don’t leave money on the table."
In our SIG University CSP course, we learned the benefits of “leaving money on the table” as this negotiation style builds trust, transparency, and a collaborative relationship with suppliers. Yet, the concept of leaving money on the table seems to be taboo in today’s business environment. Nine of the top ten hits from a Google search of the phrase are articles about why it’s a bad idea, a sign of weakness, or otherwise poor choice to do so. Perhaps this is more a sign of a zero-sum society than a negotiating strategy, but that’s a topic for another essay.
Let’s be clear that there are many business transactions where it is appropriate to pay the lowest price for a product or service. For example, products that have defined specifications, from a #2 pencil to a powerful server, or a service that has a measurable deliverable, should be sourced at the lowest price in the market. But when is leaving money on the table a good strategy?
William J. DeMarzo, Sr. Director, The Bank of New York Mellon
This month we host our June Microlearning Event, have a host of exciting industry research and webinars to keep you up to date.
June Microlearning by SIG University
Microlearning by SIG University is a two-hour immersive session for all levels of sourcing, risk and procurement practitioners.On June 10, renowned third party risk expert, author, and educator, Linda Tuck Chapman, CEO of Third Party Risk Institute, will lead a session on integrating strategic sourcing and third party risk management for high impact results. She will be joined by Tom Ciardiello, a strategic sourcing executive, who will present on the total financial impact of a deal from cost modeling to hidden cost & savings.
Join us for this opportunity to “ask the experts" and gain valuable insights based on tested and trusted methodologies.
Beyond ERPs: How Source-to-Pay Solutions are Changing the Game for Procurement
To manage complexities like the global pandemic, rapidly fluctuating customer demands, and changing regulation and compliance standards, procurement teams require a unified Source-to-Pay solution that offers:
SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Andrea Solano discusses how taking the C3PRMP program helped her to implement the framework for her team to operate as an optimal risk management and risk mitigation function across her department and enterprise-wide.
There are different types of workstreams and specializations that have been around a long time. However, the discipline of Third-Party Risk Management is something that is in the very beginning stages of inception. Currently, it is evolving into a discipline that many organizations shall be implementing as a standard operating function in the Silicon Valley business sector I work at. Working at Silicon Valley, the term Third-Party Risk management is still somewhat foreign and not understood as a critical and vital risk management function.
Third-Party Risk Management Function
The key role that I fulfill within the Third-Party Risk Management life cycle is in the due diligence process, which is the internal audit function that serves as a 2.5 – 3rd line of defense within my organization’s Risk Management Function. The SIG University Third-Party Risk Management training that I have taken throughout these past ten weeks has been highly instrumental for me. It will help create, build-out, and develop an internal audit framework that will be customized to meet the needs of this brand-new Third-Party Risk Management function within my organization.
Andrea Solano, Global Security 3rd Party/Outsourced Audit Manager, Facebook