Managing the Business and Legal Risks of Working with Third Parties

article image
ARTICLE SUMMARY:

In the eyes of the law, third parties—suppliers, distributors, and other business partners—are considered an extension of your company, so it’s in your company’s best interest to build third-party due diligence into your compliance program. Partners from the international consulting firms Guidehouse and the Red Flag Group provide a road map. By J. Mark Farrar and Thomas K. Hauser (Guidehouse), and Juliet Lui (The Red Flag Group).

Right now, every business story is a COVID-19 story; the pandemic has called into question business models from higher education to healthcare (do we ever need to go to the doctor’s office again for routine things, or will telehealth suffice?) and has disrupted day to day business operations.

Business travel has largely ceased and entire countries remain closed to travelers. Suppliers have temporarily shut down, and companies are casting about for alternative supply chains, while the pandemic-related high demand of some categories (ventilators and other respiratory equipment, for example) has companies and providers looking to new sources to augment supplies.

Some companies serving healthcare segments where there is, currently, little demand (elective orthopedic procedures, for example) are temporarily switching their manufacturing operations in order to provide items vital to pandemic patients. This all represents rapid change and new kinds of risk.

×



This article is restricted to subscribers only.

Sign in to continue reading.

Questions?

We're here to help! Please contact us at: