RiskTalk: How smart monitoring protects your organisation from risks

In this article, we delve into the latest episode of RiskTalk, where monitoring takes centre stage. Monitoring is an essential component of managing risks in complex supply chains. With suppliers and partners increasingly scrutinised due to regulations and reputational risks, it’s crucial to implement effective monitoring. In this episode of RiskTalk, the podcast by 3rdRisk, Bram Ketting (Co-Founder of 3rdRisk), Peter van der Toorn (Founder of Business Radar), and Sem de Spa (Director of Sustainability Technology at Deloitte) discuss how smart monitoring can help you maintain control over third parties and achieve sustainability goals.

‍Why third-party monitoring matters

Bram Ketting explains the importance of monitoring in simple terms: "What would you do if a key supplier suddenly faces public scrutiny? Or if a party in your supply chain is found to violate regulations? Monitoring is the way to maintain control and stay ahead of risks."

The episode focuses on the various types of monitoring businesses can employ to keep track of negative media, regulatory compliance, and sustainability. It’s not just about detecting risks but also creating value by intervening early. "Start with news monitoring," Bram advises. "It’s an accessible way to extract significant value and spot potential issues early."

Monitoring in practice

Peter van der Toorn explains how Business Radar, which is integrated by 3rdRisk, uses monitoring to inform companies about risky events in a timely manner: "Our software monitors thousands of news articles daily, signalling when a supplier or client appears in the news for negative press or regulatory breaches. We inform our clients, and they take action. Often, businesses act immediately to limit reputational damage based on our alerts."

However, Peter warns against starting without a clear strategy: "What do we want to achieve? What core values do we want to monitor? Without a plan, monitoring can quickly become overwhelming." His advice: start with a clear vision and use monitoring as a proactive tool.

Monitoring for sustainability

Sem de Spa highlights how monitoring supports sustainability and compliance: "The greatest impact on sustainability lies within the value chain. Yet many companies know little about their chain, let alone their suppliers' suppliers."

Monitoring offers insights into issues like human rights and deforestation, enabling proactive responses to risks. With new sustainability regulations like the Corporate Sustainability Reporting Directive (CSRD), monitoring has become even more critical. "Companies need to map not only their direct activities but their entire value chain to comply with regulations," Sem explains.

Sector-specific monitoring needs

For sectors like retail, manufacturing, and financial services, monitoring is indispensable due to their extensive supply chains. "You need to know what’s happening across the entire value chain," Bram emphasises. "Whether it’s credit risks, sustainability, or compliance, monitoring helps you stay proactive."

The future: AI and automation

Technology is playing an increasingly significant role in monitoring. Bram and Peter discuss how AI can elevate monitoring: "AI helps us differentiate between relevant and irrelevant signals," Peter explains. "For example, detecting fake news: smart algorithms can identify reliable information faster."

Bram adds: "AI will help identify trends and enable faster decision-making, especially with large datasets. Companies should start small, focusing on one risk domain, and expand gradually. This keeps the workload manageable and builds internal support." AI can also reduce false positives: "AI allows us to better determine which signals require action, greatly improving monitoring efficiency," says Peter.

From small start to big success

Bram shares a real-world example of a major department store that recently started monitoring with Business Radar and 3rdRisk: "They began with just 50 third parties and saw value within two weeks. They then expanded monitoring to manage broader risks and act more proactively." This demonstrates how even a small start can make a significant impact.

Action is key

Monitoring is no longer optional; it’s a necessity. Smart monitoring helps businesses manage risks, seize opportunities, and strengthen their position in the supply chain. As Bram concludes: "If you want to proactively manage your value chain, monitoring is an essential tool."

The episode ends with practical tips:

• Start with news monitoring.
• Define a clear strategy.

Monitoring not only protects businesses from risks but also strengthens their reputation, ensures compliance, and enhances collaboration with third parties.

Listen now‍

Listen to this episode of RiskTalk now. It's available on all well-known podcast channels.