The energy and utility industry is comprised of companies that create, manufacture, discover, extract, refine or distribute the various forms of energy in ever-increasing demand across the globe. They engage third parties for supply, mining and delivery of resources and for distribution.
In late 2013, an international oil field supplier was charged with FCPA violations by the DOJ and SEC involving suspected bribes paid to foreign government officials through a joint venture with a third party. The company ultimately paid a settlement of more than $250 Million. As a highly regulated industry closely watched by local, state and federal agencies, energy and utility companies must properly manage their third party relationships.
Every day energy and utility companies need to ensure their third parties are compliant with laws and regulations covering safety, both physical and environmental; managing information security and data privacy; receiving and validating insurance attestations and monitoring access to internal systems. Also, these companies need to have ready disaster and recovery programs in place should material third party relationships change or be affected by seismic, weather or political events.
Assessing, mitigating and managing risk and compliance is vital for energy and utility companies with so many third parties engaged. Given the global scope of their third party relationships, the possibility of regulatory infractions is very high. Hiperos 3PM™ provides the scalable, cost-effective solution to managing third party relationships for the energy and utility industry.
To learn more about how Hiperos can benefit Energy companies, click here.
- Improve the accuracy and quantity and security of supplier and third party information
- Manage third party performance
- Reduce brand risk
- Monitor third party compliance with domestic and international regulations, trade and commerce laws
- Create disaster back up and mitigation plans
- React quickly to incidents with an always available audit trail