Mastering Risk Management

INTRODUCTION

This chapter is about the risk management of third parties. Those third parties may be suppliers, who are providing outsourcing capabilities, or simply trade suppliers. Either of them will almost certainly be in some measure in a supply chain. As for outsourcing, that may involve the transparent transfer of part of the business to a third party, or the transfer of a service, by white-labelling, to a third party, including another member of the same group. It all involves agency arrangements and could be by way of a joint venture.

In all cases, if it is to work effectively both parties will work as partners. Nearly all aspects of outsourcing risk management revolve around the need to establish a balanced and fair partnership between ...