Perspective
31 Mar 2017
Effective third party risk management
Strategies to improve contract management
Managing third party contracts is becoming increasingly challenging. Effective third party risk management investigates the benefits of analytics and real-time automation to avoid costly billing errors and unnecessary contract management inefficiencies.
As organizations rely on more and more third parties to grow and thrive, they’re exposed to higher levels of risk. Manual processes, silos in contract administration, and technology and resource constraints can all lead to significant errors in third party billings—errors that, on average, amount to between three and five percent of an organization’s contracted spend.
Our report, Effective third party risk management, demonstrates that in order to effectively manage increasingly complex third party contracts—and reduce costly errors—organizations must shift towards a new style of third party management. In our report we discuss:
- The risks and repercussions associated with third party contract management shortcomings
- Common gaps in third party contract management processes
- Examples of how new solutions and technologies can help organizations optimize their third party processes
- Examples from leading organizations demonstrating the value of implementing a real time solution to manage third party contracts
