When asked about the top three compliance issues for their company, 25% of compliance experts in Germany cited “Third Party Risk in the Supply Chain” (source: NAVEX 2025 “State of Risk & Compliance Report” ). This means that we work with external partners as a key topic for companies today.
With growing pressure from ever-changing regulations and ethical requirements, third-party risk management is becoming increasingly important for organizations of all sizes. For compliance professionals, it’s no longer just about reacting; it’s about acting proactively to protect your business. Business partner due diligence is the basis for a company’s resilience.
From due diligence to integration and documentation and real-time data analysis, this article outlines the steps to ensure compliance with your business partners and mitigate supply chain risks.
Due diligence – regulation meets strategy
With the emergence of laws such as the EU Supply Chain Act (CSDDD) and the UK Economic Crime Act (ECCTA), regulatory authorities’ expectations regarding third-party risk management are constantly increasing. Trust alone is no longer enough – organizations need to demonstrate that these relationships are necessary and nurtured. Trust alone is no longer enough; organizations must document and demonstrate the necessity and active management of these relationships.
A resilient and verifiable duty of care is indispensable. This requires the introduction of strict onboarding procedures that not only comply with international legal standards but also reflect the company’s core values. It’s no longer just about passively reviewing; it’s about taking a proactive approach that identifies risks, defines responsibilities and ensures that every partner in the supply chain acts ethically and compliantly.
Solid processes: From integration to responsibility
Problems with suppliers often arise due to ambiguity and lack of information. Therefore, the integration phase is critical. A well-designed new business partner onboarding program helps identify gaps before they lead to compliance violations.
The effectiveness of such a program is based on three pillars:
Early detection of risks
Strict selection of suppliers before the contract is signed enables weaknesses to be discovered
Clear definition of responsibilities:
In integration, clear roles and functions must be assigned to each party, creating an accountability mechanism integrated into the process
Intelligent automation:
Tools and automated processes can facilitate due diligence and controls, reduce friction losses, while ensuring strict compliance.
Documentation: Foundation for strategy and control
With increasing regulatory requirements, accurate documentation is becoming a strategic competitive advantage. Proactive, transparent and organized verification goes beyond mere compliance with legal obligations. It actively protects the company from regulatory sanctions, private litigation and reputational damage.
Onboarding documentation and supplier lifecycle tracking must be designed to meet regulatory requirements and support decision-making. This process protects the company. In addition, transparent and well-documented supplier management creates a competitive advantage, strengthens customer trust and strengthens business relationships.
With data for more resilience
To overcome these challenges, organizations can leverage integrated platforms that automate integration, perform real-time audits and continuously monitor risk. These solutions enable regulatory requirements to be linked to operational processes. They provide real-time visibility across the supply chain, allowing for a differentiated approach that considers local specificities and international regulations. The ability to generate complete audit trails is essential for both internal monitoring and external reporting.
The resilience of your supply chain relies on your organization’s ability to leverage compliance strategically. Strict integration processes, reliable documentation, and innovative technologies enable compliance teams to mitigate risk and strengthen partnerships.
Learn how to master business partner due diligence instantly and confidently with NAVEX IRM or NAVEX RiskRate.
