• Service: Advisory, Management Consulting, Business Performance Services
  • Industry: Life Sciences
  • Type: Video
  • Date: 3/7/2014
  • Length: 4:54 Minutes

Staying Off the Front Page: Complying with Legislation 

Jan Fokke van den Bosch, ING:

cutting through complexity


Complying with regulation

Global Chief Purchasing Officer
ING Bank

in conversation with

Advisory Partner
KPMG in The Netherlands

Complying with regulation

In today’s environment, CPO’s within financial institutions are increasingly under scrutiny

JAN FOKKE van den BOSCH: I think if you look at the challenges probably all CPOs and banks face at the moment is that we are the persons under the magnifying glass, every step we make as a bank, no matter, it’s to our clients or to our suppliers. They’ll be front page news as soon as things turn out to be different than people expect.

Complying with regulation

Regulatory proliferation is increasing the resource requirements needed to ensure compliance

The risk is one of the main aspects, and also one of the biggest consumers of resources in procurement


at the moment in the financial industry, especially in banks. We are looked at by different types of regulators. All regulators want to know and need to have proof that we behave as we should behave, and our suppliers should behave like they want them to behave. So there’s quite a lot of regulations, an increasing number of regulations that we need to comply to. The regulators, at this moment, expect us to check our supply just as we check our clients. That’s huge. We need to know everything from our suppliers, all their management, the background of the management of our last suppliers, everything needs to be checked. We need to show within 24 hours how our suppliers are doing, what their background is, the financial status, the connection with the blacklisted countries, all those things. We need to be able to show that in 24 hours after questioning,


and that’s a pretty tough job to do. Getting into your second tier and your third tier supplier base, it’s a very difficult one and a very, very immature process at the moment for financial institutions.

Complying with regulation

Risk management starts in the sourcing process

So what we’re doing is we, in our source to contract process, we already have established the whole risk compliance process, so there’ll be no upfront before we start contracting a certain supplier for a certain service or product that we know those details, and we have tried to streamline the process in such a way that it’s not going to consume three times as much time that it used to be in the past, so it’s a very proactive way of working so that we don’t need to do the qualification after we have started the contracting phase or those things, so all our [PH] RFI phase is getting more and more important to us,


more important than the RFP phase, because we cannot afford to do those things afterwards, because it’s going to consume too much time and too much questions from risk, from compliance, from our internal, but also from regulators.

Complying with regulation

Regulatory compliance: one step forward, half a step back

JOHN TROS: I think the challenge of a bank is they’ve got a lot of people which monitor them. It’s like the central banks, European central bank, it’s like a control body of stocks, they’ve got a really big number of people which look at them, and everybody has got the same, different point of view, which means it’s constantly one step forward, a half step back, and some of these regulators don’t really know what they’re searching for, and I agree with Jan Fokke that they are also still finding the way to get out of the maze,


and if you like the reputational risk, I think that’s a bigger challenge, because if you as a bank are squeezing your suppliers to the max, and a supplier puts a newspaper, puts a letter to a newspaper or puts it on Facebook or puts it on Twitter, that immediately impacts on your reputation.

cutting through complexity


The C-suite is constantly challenged to balance responsiveness to the business needs, while avoiding missteps or misperceptions which could end up on the front page. The CPO faces the additional burden of responsibility for supplier compliance “beyond the four walls”. Jan Fokke van den Bosch, Global CPO at ING Bank, discusses how his organization ensures regulatory compliance – both internally and across the extended supply chain.

Jan Fokke van den Bosch, ING

Jan Fokke is the Chief Procurement Officer of ING, responsible for the total spend of approximately € 4 billion worldwide. Jan Fokke joined ING Bank in November 2011, after 10 years as a partner at A.T. Kearney management consultants.

Jan Fokke has more than 15 years experience in procurement and supply chain management in various industries, like automotive, high tech, consumer goods and financial institutions. Jan Fokke holds a degree in business economics, with emphasis in Marketing, from RSM.

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