Disruptive events like natural disasters, workplace incidents, data breaches, and supply chain disruptions can all have costly consequences even for the most affluent organizations. Without a doubt outsourcing has many benefits such as greater efficiency, lower costs, labor force flexibility, and an infusion of skills. But does your organization require adequate third-party risk assessments and controls to mitigate against events like these, and more importantly are your contractors compliant to these requirements? Unless you are prepared, contractor management challenges can be overwhelming.
Don’t let third-party risk & contractor management challenges ruin the reputation of your organization, leaving you to deal with unhappy customers and stakeholders. These events could also leave your organization exposed to litigation, prosecution, or fines from regulatory authorities.
Piggy backing off your current safety, quality, or risk management systems provides an opportunity to assess current contractor risk, incident, and hazard data for the work being tendered. This can then be used to develop the assessment criteria for your future contractor management system. Most importantly though, contractor risk is not just about safety risk.
It’s true an effective contractor management system will make your organization safer and more secure, allowing you to identify and monitor contractor management challenges while improving safety controls across an organization. A contractor management system should also include the ability to assess the strategy, structure, people, process, and technology across the whole of contractor management lifecycle.
An effective contractor management system can be either online Software-as-a-Service (SaaS) or stand alone on your own server. Whichever method is chosen, it should allow access to your contractors giving them the ability to self-manage themselves, by uploading certifications, uploading compliance documentation, and conducting training modules or accessing induction materials.
The supplier or contractor evaluation is a widely used assessment in supply chain management and procurement today; therefore, it makes sense to include this in your contractor management system. The contractor evaluation should be the key tool providing a quantitative assessment to ensure that only best-in-class contractors are available to minimize third-party risk to your organization.
Another valuable and equally common tool that should be used in your contractor management system is the risk assessment tool. Risk assessment of contractor tasks and operations should be a key request in all tender documentation packs.
For over 15 years, Avetta has helped the world's leading organizations overcome contractor management challenges. We can help you develop a contractor management system that will be not only effective but will make your organization safer and more secure, while minimizing disruptions from third party risk. Request a demo now or visit the Avetta Resources page for more great content.