In today’s business world, most organisations
rely on increasingly critical and often complex relationships with third
parties. Value creation frequently hinges on the effective management and
control of the “extended enterprise” created by these relationships.
Management have probably realised the need for extending enterprise to create
value – alliances, supplier partnerships, joint ventures, outsourcing – but
have your risk management and control frameworks kept pace with this evolution?
What assurance do businesses have that they are working effectively or are even
fit for purpose in the extended enterprise?
Organisations are experiencing considerable
leakage of value by not effectively managing these relationships. Are your
activities fitting snugly with those of your partners or are they leaking
Are your alliances, partners, outsourcers,
distributors and licensees operating effectively delivering your business
objectives? Are your critical business relationships achieving their potential?
Issues may have already arisen about the
contractual and operational arrangements that you have. Issues may have emerged
in relation to the business protocols that have emerged as the relationship has
developed. It may just be that no-one has looked at the relationship recently
or in a sufficiently thorough, risk focused way.