The Red Flag Group experienced continued growth of Compliance Managed Services in 2017. Revenue grew by a third, signalling an increased recognition and appreciation for compliance outsourcing solutions in the market.
Underlying this growth in 2017 are several success stories that exemplify the gains in efficiency, time and resource allocation for organisations using our solution:
We managed the channel partner onboarding and supplier onboarding for a top-five pharmaceutical company
• Over the course of the year, we tripled the number of business partners and suppliers processed compared to past years (1,500 managed by The Red Flag Group in 2017, compared to approximately 500 by the client in 2016).
• Our team decreased end-to-end processing time per partner from 22 days to eight days. We managed due diligence reviews on 50 third parties for a leading oil and gas company
We managed due diligence reviews on 50 third parties for a leading oil and gas company
• Due diligence activities managed included distribution of questionnaires, follow up with third parties to ensure response, media research, and reference checks.
• Our teams completed this work in two months, allowing the client to make timely, informed decisions on high-risk third parties.
We conducted database screening for an entertainment company’s US and Europe-based partners
• The Red Flag Group screened and reported on over 12,000 partners using its IntegraWatch® | Compliance Screening database in six weeks.
• As a follow-up to the screening, we are continuously monitoring these partners and alerting the client of changes in status.
Vision for FY2018/19
To build on the growth experienced in 2017, The Red Flag Group is expanding its outsourcing solutions to a broader spectrum of corporate and financial stakeholders. The impetus driving this expansion is simple — organisations want to ensure that compliance can be used to accelerate business growth, not just to identify potential compliance red flags.
In 2018, The Red Flag Group plans to include Compliance Managed Service offerings for the following organisational stakeholders:
A. Procurement and supply chain professionals
B. Channel partner managers
C. Merger and acquisition attorneys
Procurement and supply chain officers
The top priorities for chief procurement officers in 2018 include reducing costs, managing risks and introducing new products and services into new markets. To achieve these goals, procurement departments need a way to easily and efficiently identify fiscally-stable, low-risk suppliers who can operate in a multitude of markets.
The Red Flag Group is now offering its Managed Supplier Onboarding and Screening solution. Our teams manage the supplier onboarding and diligence process for procurement departments directly, providing data and insights, so they can easily retain the lowest-risk and most stable suppliers.
Channel partner managers
The top priorities for channel partner managers include selecting business partners that add value, increase business and strengthen brand reputation. To achieve this, channel partner managers need a list of low-risk, viable channel partners that they can easily access in relevant markets.
The Red Flag Group is now offering a Managed Channel Partner solution, with which our teams manage the onboarding and screening of new and existing channel partners directly. Channel and sales managers simply need to submit a request for a channel partner for processing, and our team will manage them through the organisational onboarding programme and deliver results that highlight:
• Whether the channel partner meets organisational ethical standards
• What risks the channel partner presents
• What additional steps need to be taken before the channel partner can be utilised
Merger and acquisition attorneys
General Counsel and merger and acquisition attorneys must manage a variety of issues when overseeing an acquisition. One the most essential priorities in an acquisition is properly screening third parties being brought into the acquiring company’s business. The Red Flag Group provides you with a Professional Service Associate to help:
• Identify which third parties are being transferred
• Gather data on these third parties from the target company’s systems
• Organise and conduct due diligence on these parties
• Provide reporting, insights and next steps
By outsourcing acquisition integration due diligence to our team, stakeholders involved in an acquisition can make more prudent and timely decisions on a target company’s third parties.
This is an extract from The Red Flag Group Annual Report 2017/18. To read the full report please click here.