Relationships with third parties can create substantial risk, especially in sectors where companies critically depend on them. It is not unusual for a contract value to be passed on to these third parties. However, companies can take steps to mitigate, manage and even create value from this situation as John Barker, Stephen Watson and Javier Serra from Arthur D. Little explain in this article.
As companies' reliance on third parties (such as contractors, partners and suppliers) increases, the need to both detect and prevent risk from these third parties becomes ever more important. National legislation with broad international reach is increasing the acute risk of legal non-compliance and the associated impact on corporate reputation. In this article, Stephen Watson and Javier Serra of Arthur D. Little, explain why a risk-based due diligence approach is required to detect and prevent these risks.
Senior Arthur D. Little employees James Catmur, John Barker and Charles Boulton discuss how ‘agile’ concepts are being used to improve corporate efficiency without compromising safety and risk management. ‘Agile’ solutions place the emphasis back on business aims, preventing adherence to a linear process from becoming an aim in itself. Using a detailed model of Agile Options they address both the challenges presented by this concept and the way forward. To be successful in the long run, they argue that companies will need to demonstrate to stakeholders that the results achieved with agile solutions can match up to traditional approaches. There is still some way to go before stakeholders can be convinced, but the early signs are promising.