Too many companies consider that an anti-corruption code of conduct and a whistle-blowing system protect them sufficiently, but to avoid the devastating scourge of corruption, it is necessary to embark on the 8 measures of the anti-corruption system of the Sapin 2 law, very well described in the AFA recommendations, and in particular the 8th measure of third-party assessment. A robust assessment of the integrity of third parties makes it possible to look individually at each partner at risk and prevent a problem before it arises. If this work is not carried out properly upstream, and proven facts produce an internal crisis or even a CJIP (Convention Judiciaire d'Intérêt Public), it's already too late. The manager then finds himself in the front line
to justify why the necessary resources have not been put in place. While it's true that companies often initiate the third-party assessment process to "tick the box" of compliance, their motivations quickly evolve. Alignment with corporate values, such as integrity, plays a powerful role in anchoring this practice. The demands of key accounts also have a ripple effect throughout their entire value chain, as failure to have a third-party assessment policy means risking the loss of important tenders. Finally, there are employer branding issues, with major objectives such as attracting talent in search of meaning, or reassuring banks before granting financing.
What are the factors transforming third-party valuation?
Firstly, there is still a major gap between ambition and reality: 88% of AFA inspections reveal shortcomings in the assessment of third parties, and only 29% of companies consider their own procedure to be effective. And for good reason: without a digital solution, the task is extremely time-consuming.
lists of international sanctions, analyzing negative press on every continent...
Several trends are emerging to meet these resource optimization challenges: the massive automation of tasks to free up human time and make the process manageable and relevant; the use of artificial intelligence for complex searches; the need for a 360° view integrating corruption, cyber, CSR and financial risk; the ability to adapt the depth of analysis to the risk level of the third party defined by risk mapping; and finally, the management of escalation workflows to ensure that sensitive cases are escalated to the right person so that a decision can be taken at the right level.
We designed our solution precisely to meet all these challenges. In concrete terms, you enter the identifier or name of a company and, in a matter of minutes, our platform carries out a task that would take a human being days to complete. It aggregates all the data, performs the screening, identifies links with politically exposed persons, and delivers a raw risk score. The user is guided step by step to refine the analysis and document the decision. Whether due diligence is centralized or decentralized, with one or hundreds of users across multiple sites, like some of our major customers, Ellisphere enables you to manage third-party compliance risks. What's more, our approach is scalable. For example, the platform will enable you to track the mitigation actions implemented to control an identified risk, such as an on-site audit or the reinforcement of a contractual clause. Because we are constantly innovating in co-development with our customers. Our latest breakthrough uses AI to analyze press coverage of duty of care issues (human rights, environment). Our aim is to make compliance not only feasible, but also acceptable and effective for everyone, from the legal expert to the subsidiary buyer.
