How audit committees can take the lead in stemming third-party risks –

The risks associated with doing business globally include third-party bribery, fraud, or supply-chain issues.

Click on the following link for the article: www.cgma.org

Dave Tate, Esq. comments – this is a reasonably good, short, general discussion with some ideas for addressing third-party risks. Third party risks of all kinds have been in the news. Without doubt, these are risks that need to be addressed with effective processes and policies. I do take exception to one sentence in the discussion: “PwC recommends that audit committees take the lead on third-party risks, noting that these types of risks are not always covered by a company’s traditional internal controls or enterprise risk assessments.” Instead, audit committees have oversight responsibility. The audit committee can take and sometimes, perhaps many times, is tasked with taking the lead in oversight, as a committee of the board. However, the overall board also remains responsible for risk management oversight. The executive officers, legal counsel, risk management, internal audit, management, employees and other people take the day-to-day lead. But this article is good for thought.

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