Nick Jenkinson, Chief Procurement Officer, Santander
Third party risk has changed significantly in recent years, but Nick Jenkinson, Chief Procurement Officer, Santander, highlights that a ‘knee-jerk’ reaction is never a useful way of managing disruption. So how can we prepare for performing supplier risk assessments in a post-pandemic era.
“The key thing for me is building a foundation”, he adds. Risk assessment can often be founded on processes and identifying and building these procedures out are incredibly valuable when looking to improve a business’ competitiveness.
Third-Party Risk Management Programme
Nick emphasises that Santander created an effective and efficient third-party risk management (TPRM) programme as part of wider Procurement transformation initiative. They broke down the process into six areas:
- Strengthen compliance and control
- Relocate resource to focus on strategic activities
- Clear, intelligent processes underpinned by technology
- Develop supplier and risk management as a core capability
- Enable stakeholders to do their day job
- Enable Santander to act faster
So how are they getting to these proposed outcomes? “To do this, we’ve designed the programme around four key designed principles”, Nick adds. They can be broken down as the following:
Simplicity – Use of intelligent and simple processes which maximise automation
Enablement – moving supplier risk away from just the procurement team so that it is everyone’s responsibility
Technology – use of tech to automate and simplify processes wherever possible
Transparency – provide transparency in their ways of working so that the right decision can be made as often as possible.
Increasingly, companies are becoming more reliant on third parties and therefore a fantastic TRPM programmes requires a holistic approach. To understand more about the ways in which organizations can find hidden risks within third parties, be sure to discover the SCOPE: Supply Chain, Procurement and Logistics Community >>