1EY Business Intelligence: third-party risk management technology

EY Business Intelligence A disruptive offering to traditional due diligence

March 2018

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The difference between information and intelligence is context and experience.”

Today’s regulatory and enforcement environment offers no margin for error. Record settlements and fines have driven demand for transparency and accountability to new heights both in the United States and a growing number of foreign markets. There are higher standards for corporate integrity and responsibility and less tolerance for poor behavior by employees, third parties and government officials. Expectations for conducting business in an ethical manner are higher than ever, yet compliance costs are skyrocketing as companies look for growth. Developing actionable intelligence to craft sound business decisions is paramount.

Managing large volumes of third parties, often across multiple jurisdictions, is a significant challenge for compliance professionals. The massive amounts of data related to third parties make it hard to analyze the critical facts to protect your business. However, you cannot afford to be complacent with your due diligence around third-party vendors.

EY Business Intelligence helps you streamline your business and stay ahead of potential issues. We combine cutting-edge data analytics and monitoring technology with relevant human analysis to develop the context that is critical to understanding key facts. Our automated offerings can be embedded into your processes to manage third-party risk. We do the homework so you can make complex decisions using actionable intelligence.

— Fred Gebauer, EY Business Intelligence Leader

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Consistency and continuity through technology

EY Business Intelligence is a flexible, centralized, end-to-end third-party risk management and compliance technology offering with global scalability. It provides consistency and continuity in the onboarding and diligence process, while allowing compliance professionals within your organization to implement a risk-based approach to due diligence. Coupling a centralized due diligence process with the ability to analyze and monitor third-party relationships at a macro and micro level, EY Business Intelligence provides the opportunity to ask the specific questions that are most relevant to your business.

Blending technology with human analysis

EY developed this proprietary technology by drawing from the breadth of our experience working with clients to manage their third-party risk, our understanding of regional and industry-specific risks, and our extensive investigative experience and technology assets across the EY Fraud Investigations & Dispute Services global network.

We understand that leveraging technology is essential for you to effectively manage the volumes of data compliance officers gather and retain in relation to third parties. Combining technology with human analysis is critical to effectively synthesize findings, analyze results, and offer unique insight and context to interrelated data points.

We pair robotics, cutting-edge data analytics and monitoring technology with human analysis to help you better understand and manage risk in your third-party interactions. Our professionals performing diligence around the globe summarize findings, analyze results, provide insight and context to interrelated data points, assess potential false positives and highlight potential risk issues that may warrant further attention.

Context matters

Context turns information into actionable intelligence that you can use to make informed decisions. We harness our collective understanding of a country’s business, regulatory and legal environments, the limitations of each data source we access, and the industry-specific and risk-specific considerations required to effectively analyze potential findings.

We apply an investigative mindset, approach and methodology to due diligence. We question and triangulate our findings, drawing upon our industry-specific experience in emerging markets. This approach provides added visibility for you to focus on the results.

1Risk

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essment Capablities

3Analytics

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Du

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5Monitoring

Cloud-based technology offering

Key components in EY’s proprietary technology

Supporting complex decisions Supporting complex decisionsCompliance vendor due diligence

Our due diligence methodology distills large volumes of information into actionable intelligence. EY’s offerings range from baseline watch-list and sanctions compliance screening to using in-country local resources without the use of subcontractors. Our centralized management hub provides uniform delivery and execution, effective global coordination and the application of consistent methodology and review protocols. Our research hub oversees global due diligence research and works closely with our local professionals to leverage the knowledge of our local teams. We also assist with third-party risk management process assessments related to your broader compliance framework.

Pre-transactional commercial due diligence

Our global presence and experience allows us to create tailored offerings to commercial due diligence and provide independent, fact-based analysis. Our pre-transaction due diligence services offer comprehensive, detailed research and investigative reporting that are often business-critical and time-sensitive to senior client management. Our team will work directly with corporate development or as an extension of existing advisors to develop an understanding of your requirements and codevelop an approach reflecting the goals and objectives of the company.

Investigative due diligence, business intelligence, asset tracing and litigation support

Investigative public record research is a critical element of broader fraud investigations. We provide customized support through targeted public record analysis. This may include the following:

• Conducting background research of fraud suspects to identify undisclosed relationships or potential conflicts of interest

• Identifying evidence of risk-relevant activity

• Identifying evidence of legal disputes or financial distress

• Identifying the presence and movement of assets to support legal proceedings and/or regulatory investigations

Third-party compliance management tools and technology

EY continues to develop technology that allows us to help clients respond to their changing due diligence requirements. We offer a flexible range of offerings, including due diligence management tools to assist in managing volumes of third parties that often place an undue burden on compliance professionals and end-to-end compliance workflows that provide clients with visibility of their broader process and status of their third-party relationships. Our technology provides the following:

• Optional third-party monitoring

• Ability to manage third-party populations through risk analytics and scoring to provide vital analysis about global vendors

• Due diligence reports based on risk levels with the option to integrate our offering with enterprise resource planning systems. Our tools are continually evolving and tailored to your business, becoming a centralized resource for your third-party compliance needs

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Why EY?The largest global network of due diligence professionals in the industry

EY Fraud Investigation & Dispute Services operates the largest integrated global network of professionals. Our more than 4,500 executives are experienced in intelligence gathering, fraud and anti-corruption compliance and investigations, forensic accounting, forensic technology and litigation support.

Our Business Intelligence team is composed of more than 250 dedicated investigative researchers across 10 regional research hubs supporting over 40 languages. We perform tailored due diligence research supplemented with decades of investigative experience from former intelligence professionals, prosecutors, law enforcement professionals, political insiders, regulators, forensic accountants and other executives. This approach allows us to combine due diligence with local knowledge, centralized delivery and quality control. We support the seamless delivery of high-volume due diligence reporting at differing levels of analysis.

Customized for your risks

Due diligence plays a critical role in arming companies with the facts they need to proactively and effectively manage the nature of their third-party interactions. EY understands that each of your business and third-party relationships are unique, posing different challenges and priorities.

Our methodologies to manage your third-party risk reflect our understanding that no single approach can respond to all of your objectives. We provide a range of due diligence and third-party risk management services that are aligned to varying risk profiles and your business requirements, enabling us to seamlessly deliver more tailored approaches.

Discretion you can rely on

Our investigative due diligence operating model does not rely on subcontractors or third parties. We leverage our existing global network of investigative professionals to bring quality research and reporting to our clients.

Avoiding the subcontractor model has been a deliberate development strategy that provides consistent, quality service from EY professionals globally. This also promotes security by maintaining information within our network. Using our own deep bench in local markets instead of third parties enables us to secure reliable information directly from the source. You can be confident that the work product you receive has been created and reviewed by an experienced EY intelligence professional.

Digital analysis with human ingenuityWorkfow fexibility

• Flexible technology configuration to automate the collection of information from employees or third parties, as well as automate approval procedures

• Option to include a risk-based approach • Seamless integration of due diligence and technology offerings into

existing business policies and processes

Integrated due diligence

• EY Business Intelligence consists of a centralized management hub with local resources in more than 70 countries

• No subcontractors• Results reviewed and triangulated to identify potential false positives• Option to integrate due diligence requests as part of a broader

workflow for consistency and transparency

Human analysis

• Increased automation and synthesis reduces manual processes and allows resources to focus on analysis of findings

• Leveraging technology for efficient data aggregation and visual reporting allows for better internal discussion and collaboration, resulting in more informed decision-making

• Ability to document remediation and mitigation processes

Enhanced reporting

• A broad scope of diligence reports according to risk profile or business requirements

• Reports delivered directly to the platform for centralized monitoring, oversight and audit trail

• Clear audit trail for each third party • Quickly export data to meet time-sensitive requests from regulatory

agencies or internal stakeholders• Visual and interactive graphs facilitate dialogue around previously

hard-to-answer questions

6 EY Business Intelligence: third-party risk management technology

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About EY’s Fraud Investigation & Dispute Services

Dealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to succeed. Better management of fraud risk and compliance exposure is a critical business priority — no matter the size or industry sector. With approximately 4,500 fraud investigation and dispute professionals around the world, we will assemble the right multidisciplinary and culturally aligned team to work with you and your legal advisors. We work to give you the benefit of our broad sector experience, our deep subject-matter knowledge and the latest insights from our work worldwide.

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EY Business Intelligence contacts

Fred GebauerPartner Business Intelligence Leader, Americas Ernst & Young LLP+1 212 773 0237fred.gebauer@ey.com

Aruna CostaSenior Manager Ernst & Young LLP+1 212 773 7897aruna.costa@ey.com

Jessica GutsellSenior Manager Ernst & Young LLP+1 312 879 2204jessica.gutsell@ey.com