Third party failure “could cause shareholder losses of up to ten times the regulatory fine” warns Deloitte in new research findings
Reputational damage arising from third party actions could cost organisations’ shareholders an average of ten times the size of the fine itself as the market value of the company is impacted.
Deloitte’s research report – entitled ‘Third Party Governance and Risk Management: Turning Risk Into Opportunity’ – highlights the average combined direct fine and remedial costs of failing to appropriately identify and manage third parties. This has ranged from £1.3 million to £35 million before the cost of indirect losses, such as reduced sales and reputational damage.