Third-Party Due Diligence Frameworks

1. Training Introduction

The Third-Party Due Diligence Frameworks Training is a comprehensive program designed to equip participants with the knowledge and practical tools required to assess, monitor, and manage risks associated with third parties, including vendors, suppliers, contractors, consultants, agents, and partners.

Organizations increasingly face regulatory, financial, reputational, and operational risks arising from third-party relationships. A structured due diligence framework ensures compliance with anti-corruption laws, sanctions regulations, procurement standards, and ethical obligations.

This training provides a step-by-step approach to designing and implementing risk-based third-party due diligence systems aligned with governance and compliance best practices.

The program runs for 4 days (3 hours per day) and includes a 1-Day Tour/Site Visit to observe operational third-party risk management and compliance systems in practice.

2. Training Objectives

By the end of this training, participants will be able to:

1. Understand third-party risks and regulatory expectations.
2. Design risk-based third-party due diligence frameworks.
3. Conduct screening, background checks, and risk assessments.
4. Implement monitoring and ongoing oversight mechanisms.
5. Draft third-party compliance clauses and contractual safeguards.
6. Strengthen governance and accountability in third-party engagements.

3. Targeted Group

This training is suitable for:

• Compliance and ethics officers
• Procurement and supply chain managers
• Risk management professionals
• Internal auditors
• Legal and regulatory affairs officers
• Finance and operations managers
• Public sector procurement officials
• NGO and development organization project managers
• Senior management responsible for third-party oversight

4. Course Duration

• Duration: 4 Days
• Daily Contact Time: 3 Hours per Day
• Total Training Hours: 12 Hours
• Additional Component: 1-Day Tour/Site Visit

5. Training Methodology

The training adopts a practical and interactive learning approach:

• Expert-led lectures and regulatory discussions
• Case studies on third-party compliance failures
• Risk assessment workshops
• Due diligence checklist development exercises
• Scenario-based simulations
• Group discussions and peer learning
• Tour/Site Visit practical observation
• Q&A sessions

6. Course Structure

Module 1: Foundations of Third-Party Risk & Due Diligence

Content:

• Definition and scope of third-party risk
• Types of third parties and associated risk exposures
• Legal and regulatory expectations
• Common red flags and warning signs
• Governance and oversight responsibilities

Outcomes:

Participants will:

• Understand third-party risk categories
• Recognize regulatory and governance obligations
• Identify red flags in third-party engagements

Module 2: Risk-Based Due Diligence Framework Design

Content:

• Risk classification and segmentation of third parties
• Designing due diligence policies and procedures
• Screening methodologies and background checks
• Financial, legal, reputational, and compliance risk assessments
• Documentation and record-keeping standards

Outcomes:

Participants will:

• Design structured due diligence frameworks
• Develop risk assessment tools and checklists
• Establish proper documentation standards

Module 3: Implementation, Monitoring & Contractual Safeguards

Content:

• Implementing due diligence processes in procurement cycles
• Third-party onboarding procedures
• Compliance clauses and contractual protections
• Ongoing monitoring and periodic reviews
• Escalation and remediation processes

Outcomes:

Participants will:

• Integrate due diligence into procurement and operations
• Draft compliance-oriented contractual provisions
• Establish monitoring and remediation systems

Module 4: Reporting, Investigation & Continuous Improvement

Content:

• Reporting third-party risk findings to management
• Investigating third-party misconduct
• Corrective action and termination processes
• Performance monitoring dashboards
• Continuous improvement of due diligence frameworks

Outcomes:

Participants will:

• Prepare structured third-party risk reports
• Respond effectively to third-party misconduct
• Strengthen long-term third-party governance systems

7. Tour / Site Visit (1 Day)

Purpose:

To provide practical exposure to organizations implementing structured third-party due diligence and risk management systems.

Activities:

• Visit to procurement, compliance, or risk management departments
• Observation of third-party screening and monitoring tools
• Interaction with compliance and procurement professionals
• Review of anonymized due diligence documentation
• Reflection and best practice discussion

Expected Learning:

Participants will:

• Observe operational due diligence systems in practice
• Understand implementation challenges and solutions
• Gain insights into strengthening third-party oversight mechanisms

8. Training Outcomes

Upon successful completion, participants will:

• Design and implement risk-based third-party due diligence frameworks
• Conduct structured third-party risk assessments
• Integrate monitoring and contractual safeguards
• Strengthen procurement governance and accountability
• Reduce legal, financial, and reputational risks

9. Assessment & Evaluation

Participants will be evaluated through:

• Pre- and post-training assessments
• Due diligence framework development exercises
• Risk assessment simulations
• Case study analysis and group presentations
• Tour/Site Visit reflection report

10. Certificate of Completion

Participants who:

• Attend at least 90% of sessions
• Actively participate in workshops and exercises
• Successfully complete required assessments

Will receive a:

Certificate of Completion

Issued by FOTADE Training, Research and Resource Development Centre

The certificate formally recognizes successful completion of the Third-Party Due Diligence Frameworks Training (4 Days + 1 Day Tour/Site Visit) and demonstrated competence in designing, implementing, and monitoring third-party risk management systems aligned with governance and compliance standards.