Third party relationships are contract driven and most either have termination dates or automatically renew unless either party decides otherwise. There are conditions and events that can cause either early termination of an agreement, or immediate dissolution of the relationship based on actions by the third party.
In many companies, contracts expire or renew without much notice or specific planning. However, that can also mean that the relationship has not been consistently monitored throughout the lift of the agreement. With thousands of third party relationships all around the globe, managing and monitoring contract compliance and measuring them against risk or regulatory issues, companies need to plan for and execute contract termination.
When initially assessing third party risk for example, a company could decide a current third party presents too much risk and terminate the agreement or relationship immediately. In other cases, issues with compliance, a change in risk rating, not adhering to terms and conditions of the agreement could lead to termination prior to the end of life date. Or a contract could arrive at the termination date and expire. In that case, plans should be in place for return of company information, access to systems, materials, etc. to ensure security of information.
Hiperos 3PM™ provides the functionality to complete and track termination plans against third party performance or changes in risk and compliance over the life of the agreement. Automatic alerts can be issued based on timing, changes in risk level or red flags raised about third party compliance to the ever-increasing regulatory changes issued.