Somerville, NJ (PRWEB) November 01, 2013
The Office of the Comptroller of the Currency (OCC) recently issued a bulletin massively expanding the scope of how it expects banks, including community banks, to manage all of their third-party relationships.
The OCC is spelling out that the buck stops with the board of directors, and that it intends to hold the Board responsible for shortcomings and/or failure to have proper procedures in place to mitigate third-party risk. Failure to implement and be able to demonstrate appropriate controls can and will result in “appropriate corrective measures” by the regulators.
The penalties and risk are underscored by one company ensnared in such shortcomings; in an article published by Bloomberg.com on October 31, 2013 Avon shares in Avon Products plummeted 22%, wiping out $2.3 billion off the company’s market capitalization, because of significantly larger than expected fines from the SEC to settle bribery probes. In the case of Avon, the SEC is continuing to aggressively prosecute organizations that engage in corruption, whether through their own employees or third parties, knowingly or unknowingly. Failure to implement and demonstrate appropriate controls, in this case of third parties, has resulted in Avon’s shareholders taking a major hit.
Companies rely on third parties to deliver up to 60% of their revenues. At the same time, more than $1 Trillion is estimated to be spent annually by companies engaged in bribery ($1 billion per hour) – with the majority of cases investigated by the DOJ involving third parties.
Hiperos helps some of the largest corporations in the world realize the benefits of doing business through third parties while understanding and managing the risks, including those associated with regulatory compliance. It offers one of the premier solutions for 3rd party management. Hipero’s CEO is available to:
Hiperos’ CEO Greg Dickinson actively works with customers and is invited to speak at industry conferences on risk-based vetting, screening, and monitoring strategies for third parties. He can offer a unique perspective on how Hiperos’ customers are navigating these new regulatory waters and can also share additional insights on the OCC’s recent bulletin as well as Avon’s fall from grace.
Hiperos simplifies the complexity of Third Party Management. Through its flagship SaaS (Software as a Service) solution, Hiperos 3PM™, Hiperos helps companies avoid a value shortfall and fully realize the benefits of using third parties to maximize the value and minimize the risk around brand reputation, achieve regulatory compliance and optimize the customer experience. Hiperos’ clients include many of the world’s leading companies such as Aetna, AON, Astra Zeneca, AXA, Bank of Montreal, CA Technologies, Charles Schwab, Huntington Bank, Mondelez, Microsoft, PNC Bank, State Street, Thomas & Betts, TD Bank, and United Technologies. For more information, visit http://www.hiperos.com.
Ignite Public Relations
Ignite Public Relations