AML Conversations What is the Best Structure for a Due Diligence Program
5 snips
Feb 5, 2025 Dive into the nuances of structuring an effective third-party risk due diligence program. Explore the pros and cons of centralized versus decentralized approaches, tailored to the unique needs of each organization. Discover how factors like company size, resource availability, and training impact compliance strategies. Learn the essential principles for effective due diligence, emphasizing the crucial role of senior leadership. This engaging discussion is packed with real-world experiences and practical insights for optimizing risk management.
AI Snips
Chapters
Transcript
Episode notes
Centralized vs. Decentralized Programs
Centralized programs offer strong oversight for smaller organizations. Decentralized programs provide flexibility and can account for business unit nuances in larger organizations.
Consider Company Size
Evaluate your organization's size when structuring a due diligence program. Smaller companies may benefit from a centralized approach, while larger companies might require decentralization.
Program Maturity Matters
A program's maturity influences whether to adopt a centralized or decentralized approach. Older, established companies may have complex needs that favor decentralization.