How do you manage risk when the vulnerabilities are outside your organization’s in your hands? In this episode of Corruption, Crime, and Compliance, we delve into the world of third-party risk management with our guest, Natalie Druckmann, from Certa. As we discuss the regulatory landscape in EMEA and the US, Natalie highlights the higher regulatory burden faced by companies in EMEA and how Certa uses AI to streamline workflows, provide intuitive data visualization, and enhance risk forecasting capabilities. AI is the future of third-party risk management, now and in the future.
- Cybersecurity has become one of the top concerns for organizations. In 2012, Target worked with a third-party vendor and, as a result, suffered an attack that exposed their customers’ credit data. Since then, compliance departments have started working closely with IT to prevent such vulnerabilities.
- Unlike the US, EU companies don’t benefit from gaps created between state and federal regulations. EMEA faces a mandatory and substantial regulatory burden, particularly in areas like ESG and compliance. A forced labor scandal can sink a company, so ESG’s importance is on par with cyber security.
- Global companies are increasingly recognizing the importance of addressing ESG topics alongside cybersecurity and financial risks. ESG considerations, such as diversity, modern slavery, and gender pay gaps, have significant reputational and revenue impacts.
- AI is changing the world in many ways, including compliance. Certa aims to provide a comprehensive solution for third-party risk management, compliance, and operational risks by streamlining processes and incorporating AI capabilities to enhance efficiency and effectiveness.
- Certa utilizes various AI capabilities, including design AI, which allows users to create workflows using plain language. They don’t need to know anything about tech; they can simply dictate the process, and AI generates the necessary code and infrastructure for it. This allows the company to remain flexible and be able to quickly adapt to change.
- Insights AI is another capability that collects and analyzes data, making it far more accessible and efficient in managing up-to-the-minute risks and developments. This technology also uses design AI, allowing for plain language inputs to immediately create actionable, detailed reports.
- Recall AI allows companies to guarantee rapid and consistent responses from suppliers and customers by recalling past interactions to create surveys, forms, workflows, and processes. This removes the back-and-forth burden on all parties while still retaining the human touch.
- Smaller and midsize companies should prioritize their risk management processes and consider automated solutions like Certa. These companies can benefit from the efficiency and effectiveness of an automated platform, regardless of their industry or size.
KEY QUOTE:
“I think there is a very strong drive here for companies and stakeholders, not just to do the right thing… but doing the good thing as well.” – Natalie Druckman
Resources:
Michael Volkov on LinkedIn | Twitter
Natalie Druckman on LinkedIn
Email Natalie: nat@certa.ai
