Is there really a need for third party due diligence?
The debate about third-party due diligence ended two years ago when DOJ prosecutors and members of the SEC staff publicly pronounced that the use of channel partners was the biggest risk to IT companies, bar none.
February 23, 2014 at 07:00 PM
4 minute read
For those of us in the IT industry, the debate about third-party due diligence ended two years ago when the Department of Justice (DOJ) prosecutors and members of the Securities and Exchange Commission staff publicly pronounced that the use of channel partners was the biggest risk to IT companies, “bar none.”
Of course, the risk is not limited to IT companies. Increasingly, enforcement authorities recognize the importance of conducting adequate due diligence on third parties, regardless of industry.
As a result, companies and organizations of diverse backgrounds may contemplate any number of challenging decisions in developing a third-party due diligence program. Such programs can take many forms, and the costs of the due diligence can range dramatically depending on the location of the third party and the type of information a company wants to obtain.
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