KPMG’s Astrus Insights analysis provides a clear indication that companies need to take extra care in performing appropriate risk-based due diligence of third parties and better manage the risks associated with them, otherwise they could open themselves up to significant risks.
Key third-party risks
Prevalence of risk: KPMG’s Astrus Insights reveals nine in ten of our integrity due diligence reports on subjects across all sectors identified some kind of risk that warranted further review: 23 percent of reports highlighted significant integrity risks.
Fraud is the number one risk: Fraud is the most prevalent risk associated with third parties.
High bribery and corruption risks: Bribery and corruption remains a key risk in certain sectors. It was a key factor in more than 30 percent of reports across the Technology, Media and Telecommunications; Energy, Natural Resources and Chemicals; and Miscellaneous (general trading) sectors.