Mitigating risk with contractor screening critical

Nov 18, 2014

Contractor management is essential for companies working with service partners. However, some businesses take enormous risks by failing to properly screen their contractors and ensure they abide by local regulations. Proper risk management strategies are essential for firms that hire such partners.

Companies looking to work with contractors should always conduct a thorough screening process before hiring a business to perform work. Failing to do so could result in a firm hiring a noncompliant contractor and facing scrutiny down the road.

Screening is especially important if a company operates in different parts of the world, and with more businesses expanding globally, local compliance is especially important. With new regulations regarding worker safety and environmental standards, and industry methods constantly being implemented across the globe, a company should always vet potential local contractors to ensure they are aware of the latest regulations and guarantee compliance.

A hiring company should also consider taking the necessary steps to help its contractors stay on top of new laws and company-specific standards. This compliance assistance can prove to be a vital component of a successful business relationship between two firms.

With supplier qualification and management in place, management teams can rest assured knowing their partners are in line with standards that serve to protect worker safety and the environment. This can also assure hiring companies that neither party will face citations, scandals, damaged reputations or hefty fees that will damage future business prospects.