Vendor Screening: Know Who You're Working With

As your company grows, the list of third-party vendors you work with will grow with it. To mitigate associated risks, such as contractual, process, regulatory non-compliance, political, and those resulting from undesirable events and data system failures,you should implement a proper vendor screening process.

Depending on your industry, this might include background checks involving the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury debarment screening; environment, health, and safety (EHS) screening; and financial and/or legal vetting.

To best adapt to the ever-evolving trends and challenges of the global economy, your company’s vendor screening processes should encompass global regulations and other pertinent safeguards, such as international sanctions, government watch lists, and even negative media coverage.

Some questions you should ask yourself before signing any new vendor contract (just to name a few) include:

• “Are they insured?”
• “Are they compliant with my company’s standards?”
• “Do they have a good reputation with other contractors?”
• “Do they run background checks on all of their employees?”
• “Does the contract provide enough details?”
• “How will the vendor handle changes in the scope of a project?”

The following is an overview of the four vendor screening services offered by bcs: OFAC Debarment Screening, EHS Screening, Financial Screening, and Legal Screening.

OFAC Debarment Screening

The OFAC is part of the U.S. Treasury Department and is responsible for administering and enforcing economic and trade sanctions. It helps protect businesses from losses related to terrorism, money laundering, identity theft, and fraud.

When the OFAC levies sanctions against certain targeted nations, entities, and individuals, those parties are added to the Specially Designated Nationals (SDNs) list. These targeted countries and regimes are barred from conducting trade and business with the United States.

How It Works

With ReguComply, bcs screens vendors against federal compliance requirements by inspecting the SDN and other sanctions lists to determine whether potential vendor partnerships are appropriate.

EHS Screening

An integrated environmental, health, and safety (EHS) management system is mission-critical for growing and maintaining a sustainable business. EHS screening helps protect you from working with vendors not in compliance with regulations from the Occupational Safety and Health Administration (OSHA) and Environmental Protection Agency (EPA).

Implementing EHS protocols can save lives, reduce costs by identifying workplace or environmental hazards, guarantee adherence to local, state, and federal EHS statutes and regulations, and facilitate comprehensive employee training to effectively manage and mitigate potential hazards.

How It Works

With bcs, the buck doesn’t stop at compliance verification. You get a compliance partner who provides consulting, training, and auditing services to help enforce effective EHS and related quality programs. With SafeComply, we leverage the expertise of our dedicated compliance analysts to verify data and simplify the collection and review processes.

Financial Screening

Contracts with vendors in poor financial health could spell major losses for your company. When a vendor falls behind, you can end up with late deliveries, late payments, or unexpected business closures. Performing basic due diligence regarding potential vendors’ finances will help to reduce your risk, promote mutually lucrative partnerships, and keep you and your vendor affiliates in uniformly prosperous financial standing.

These checks help identify warning signs of potential illicit conduct or troubling patterns in a vendor's behavior. By thoroughly examining a vendor's track record, you can pinpoint previous fraudulent activities or unethical behavior, thus empowering your organization to make informed decisions and mitigate potential risks.

How It Works

Our brilliant analysts have developed FinComply, which uses a proprietary algorithm that delivers a comprehensive, objective overview of suppliers’ financial health. It does so by mining a national nexus of credit bureaus, including Experian, and providing our clients with an up-to-date, objective analysis of the overall financial health of their suppliers. 

Legal Screening

A thorough background check entails a comprehensive evaluation of the vendor's character, encompassing their past conduct, adherence to ethical standards, and overall reputation. 

For a company to reduce liability, ensure proper finances, remain in federal compliance, and prevent/mitigate unknown illegal actions, completing a thorough legal screening is a necessary first step in identifying and partnering with prospective suppliers or vendors.

How It Works

Authorized client users gain access to our online document repository to help evaluate risk regarding suppliers and vendors. If requested, bcs also reports any adverse findings to our clients so that the appropriate actions can be taken before any potential problems arise. Don’t put your company at risk because of an unstable supplier or vendor.

The legal information provided for our authorized clients includes:

• Bankruptcies 
• Up to a 10-year history of bankruptcy filings
• Liens 
• Up to a seven-year history of federal, state, and county tax liens
• Judgments 
• From small claims, municipal courts, and superior courts

Experience the bcs Difference today! 

As a pioneer in COI tracking solutions, bcs offers a state-of-the-art app-based platform designed for seamless and efficient monitoring. Whether you prefer a self-service approach or expert guidance, bcs has you covered. 

We’ll conduct regulatory checks and financial screenings on your behalf so you can manage your partnerships with confidence. 

Opt for our full-service solution and gain access to our intuitive app alongside personalized support from our team of compliance experts. Alternatively, empower your team with our self-service option, providing access to cutting-edge software for COI collection and review. We provide the perfect balance of technical support and human resources for third-party liability risk mitigation, including comprehensive vendor screening, to ensure maximum security and proper compliance.

To learn more about what bcs can do for your business, request a demo today.