Following the renovation of outdated, paper-based compliance programmes, Mitsubishi Electric US (MEUS) has managed to tame its third-party risk management process.
To improve the carry out tasks and organisation for its team, MEUS partnered with ethiXbase to systemise and transform the company’s third-party risk compliance, consequently transforming the company’s reporting capabilities and with it the compliance team’s reporting expertise and efficiency.
For a company that leads Japan’s technical and product innovation, MEUS reported that its internal processes weren’t as pioneering as some might have expected, and the company routinely found itself struggling to manage its third-party suppliers through the use of outdated compliance systems.
In addition to this, MEUS’ third-party due diligence checks and handling of third-party information was also found to be inefficient, often being conducted with futile web searches that found nothing but uncertainty and wasted time.
When third-party information was eventually collected, it was stored in a complex web of spreadsheets and elusive internal documents, compiled using the outdated print-sign scan method; with finalised records being almost non-existent. Get the picture? MEUS was going to have to run through an extremely costly and labour-intensive process if it ever stood a chance of updating and streamlining its system.
EthiXbase’s 360 platform leverages MEUS’ risk management process, presenting a solution to keep all of the company’s necessary third-party information in one place – readily available for any employee to view. Relevant documents were easily uploaded, and subsequently, onboarding new third parties became a simpler process.
The process included consolidating information into one single platform online which now allows the company to have a centralised view of all third-party engagements, with a view of where each third-party is in the compliance lifecycle and access high-level reports.
These attributes now mean the MEUS team can now easily access intricacies like how many questionnaires have been distributed or if a third-party is of a low, medium or high risk and customise due diligence questionnaires (DDQ) and allows the company to tailor the platform to meet its compliance needs without having to change its third party compliance process.
With the cost of assessing risk compliance being so high, by partnering with ethiXbase and using the 360 platform, MEUS’s senior management team will now have greater confidence, along with access to supporting evidence to make better informed strategic decisions as well as having the confidence that all third-parties have been properly assessed and understood, protecting the industry leader’s reputation.
“Compared to competitors, there seemed to be more flexibility with ethiXbase’s platform, especially since we could configure it and customise questionnaires to meet our company’s compliance needs,” comments Jared Baker, Senior Vice President of Human Resources at Mitsubishi Electric, US.
“Prior to working with ethiXbase, it was hard for me to track down who had been screened, what the results were, or the status of pending questionnaires. These were difficult and near impossible to find, but now it’s really easy to understand. Screenings are more efficient, and this greatly reduces duplicate efforts.”