Automotive

Third-Party Risk Management and Compliance Requirements for Automotive Companies

The automotive industry’s complex web of suppliers and distributors exposes auto manufacturers to a broad range of third-party risks, ranging from ISO/TS 16949:2009 quality standards and environmental impact of suppliers to the potential for FCPA, OFAC, or Export Administration Regulations (EAR) risk in their distribution network. As the auto industry incorporates more high tech components – such as autonomous driving or driver assistance – they are facing a new and less familiar set of third-party risk challenges. From leaks of confidential engineering data by technology partners to implementing the controls outlined in Automotive Industry Action Group’s (AIAG) Cyber Security Third-Party Information Security guidance, auto manufacturers are recognizing a need to expand their third-party risk programs.

Customer Success

The Aravo solution delivers the multi-tiered scalability that is required by the world’s largest automotive companies, including the leading North American automotive manufacturer using Aravo to support its multinational network of 440,000 third parties. After centralizing and automating third-party ABAC risk, the auto giant has segmented its third-party network and is able to assess critical third parties daily and automatically escalate potential issues.

Automotive companies use the Aravo platform to support compliance with ABAC regulations such as the U.S. Foreign Corrupt Practices Act (FCPA), and to ensure that supply chains adhere to Conflict Minerals regulations such as Dodd-Frank Section 1502. Through the platform, they can also ensure that there is third-party compliance with standards specific to the auto industry such as ISO/TS 16949:2009. The system’s adaptable model for attestations ensures that each third party receives the appropriate level of scrutiny and diligence depending on their level of risk.