Top Things To Consider About 3rd-Party Compliance and Risk Management
Oftentimes, if a company chooses to outsource their core finance operations, it means that they may not have the scale for a strong control framework or have a proper segregation of duties internally. Other benefits that business process outsourcers and cloud solutions often bring to their clients include an increase in revenue and decreased costs. This is especially true when transitioning from an on-premise solution to a 3rd-Party vendor offering cloud services. All of these can help enhance a company’s competitive edge.
Data Integrity and Backup
Data integrity is an intimidating factor for the office of finance when considering 3rd-Party compliance and business process outsourcing. When an organization relies on an external party to handle their financial information, they need to know if the provider’s environment is secure. Are the controls tested and reliable? Does the 3rd-Party provide industry level security against common cyber threats? If the worst happens, is your organization’s data backed up, or is it lost?
Though compliance risk should be a major concern for the organization, research has shown that companies’ boards are not as proactive in protecting their companies from risk factors. A McKinsey survey found that boards only spend about 9% of their time focusing on risk, and only 6% believed they were managing their risk effectively.
Companies tend to approach their compliance risks with a reactive mindset but thinking about 3rd-Party compliance demands a proactive strategy. Every organization has their own compliance regulations they must adhere to, and 3rd-Party companies are no different. However, the regulations for these companies are not necessarily the same. As organizations become more reliant on 3rd-Parties to process and handle their data, the risk of not maintaining compliance with the difference in their regulations rises. Eliminating this compliance gap is an important quality to look for in 3rd-Party financial outsourcers.
The Trintech Approach
For years, Trintech has provided a secure, reliable system of controls for companies ranging from private, middle-market firms to publicly traded global enterprises. We know and understand the compliance and integrity standards that the office of finance in any organization is subject to, especially when considering the international laws and industry practices that govern companies.
To learn more about Trintech’s approach to both the Cloud and compliance management, please visit the following pages:
Discover more about how Trintech allows organizations to leverage the latest Cloud solutions in the financial close process.
Written by: Ashton Mathai