Enhancing Compliance: A US Defence Tech Company’s Journey in Military Sanctions Screening

A leading global technology company faced significant challenges in managing its third-party due diligence process. With approximately 2,000 new third-party engagement requests annually, the company struggled with:

Inconsistent Risk Exposure: Different standards were applied across regions, leading to
varied risk assessments.

Decentralized Operations: Lack of centralisation resulted in inefficient resource allocation
and inconsistent practices.

Extended Due Diligence Cycles: The process took three times longer than desired,
impeding timely business deals.

Resource Strain: The high volume of requests (2,000 annually) overwhelmed internal
resources.

The company partnered with Rule, a best-in-class third-party due diligence provider, to overhaul its processes. Rule implemented a comprehensive solution that included:

Closed Gap: Also ensure no more backlog

Centralized Processing: All due diligence requests were routed through a single, streamlined system. This was possible as Rule was able to provide multi-lingual and multi-jurisdictional support.

Risk-Based Approach: Implemented a tiered due diligence process based on risk levels.

Standardized Procedures: Established consistent global standards for risk assessment.

Dedicated Team: Assigned specialized analysts to handle the company’s due diligence
requests.

The partnership with Rule yielded remarkable results:

Efficiency Gains

• Due diligence cycle time wsreduced by 75%, from 60 days to an average of 15 days for
  high-risk third parties, 7 days for medium risk and roughly 1 day for low risk.
• 98% of all requests processed within agreed service level agreements (SLAs)

Risk Reduction

• High-risk third parties identified increased by 80%, enhancing overall risk management
• 100% compliance with regulatory requirements achieved across all regions

Resource Optimisation

• Internal resource allocation for due diligence was reduced by 85%
• Cost savings of roughly $1.5 million annually through outsourcing and process optimisation

Enhanced Compliance

• Standardized global risk assessment led to a 30% increase in risk identification accuracy
• Audit trails and documentation improved, resulting in a 100% pass rate in regulatory audits

Business Impact

• 50% reduction in deal delays due to faster due diligence processes
• 25% increase in approved third-party engagements, supporting business growth