Finalizing the Supplier Request, Engagement, and Contract
Important: The process for final approvals is different depending on whether or not the engagement has an associated supplier request form. A Workflow Approvals section has been added to both the supplier request form and engagement applications in order to capture the business responses and respective response dates.
Regardless of whether the final approvals are captured in the supplier request form or in the engagement directly, the Business Unit Risk Manager cannot take action in the engagement until the following four requirements have been satisfied:
- An associated approved contract
- A completed risk analysis
- An established financial viability risk
- All required certificates of insurance
On this page
Engagement with supplier request form
User: Business Unit Risk Manager and Business Unit Manager derived from the Business Unit on the associated supplier request form.
First, the Business Unit Risk Manager is responsible for validating the assessment of the Engagement Risk that was performed by the Risk Analyst.
- In the case where the Business Unit Risk Manager rejects the risk assessment analysis section, the engagement is returned to the Risk Analyst for further review. Ideally, the Business Unit Risk Manger would provide comments as to why the analysis was rejected so the risk analysts or procurement officer can make the appropriate updates and resubmit the engagement. In the rejection scenario the Status is set back to Residual Risk Analysis.
- If the Business Unit Risk Manager approves the engagement risk analysis section, the status of the engagement is set to Awaiting Supplier Request Approval.
Once the Business Unit Risk Manager has approved the engagement risk analysis section in the Engagement record, overall attestation of the request, the selected engagement, and associated contract occur on the supplier request form. In the supplier request form a recommendation from the Business Unit Risk Manager to the Business Unit Manager is required.
- If the Business Unit Risk Manager has accepted the risk analysis but rejects the overall engagement, it is an indication that the Business Unit Manager should not approve the overall request, selected prospective engagement, and associated contract.
- An approval indicates not only is the engagement risk analysis complete and accurate, but a recommendation is being provided to the Business Unit Manager to also approve the overall request, selected prospective engagement, and associated contract.
After the Business Unit Risk Manager provides a recommendation regarding the overall request, it now requires a final review by the Business Unit Manager.
- If the Business Unit Manager approves the recommendation from the Business Unit Risk Manager for the evaluation of the overall results the engagement is set to Active, the associated contract is Executed, and the supplier request form is Completed. Additionally, all other prospective engagements and contracts associated to this request are canceled. The activation of the selected prospective engagement is complete and ready for the ongoing due diligence reviews. See Performing Ongoing Monitoring.
- Rather if the Business Unit Manager rejects the overall results, the supplier request form is canceled, along with all associated prospective engagements and contracts.
Engagement with no supplier request form
User: Business Unit Risk Manager and Business Unit Manger are derived from the associated Business Unit on the Engagement record.
In this scenario, the Business Unit Risk Manager not only has the responsibility of validating the assessment of the Engagement Risk inside the engagement record, but is also responsible for providing a recommendation to the Business Unit Manger regarding the overall attestation of the engagement and associated contract.
- In the case where the Business Unit Risk Manager rejects the risk assessment analysis section, the engagement is returned to the Risk Analyst for further review. Ideally, the Business Unit Risk Manger will provide comments as to why the analysis was rejected so the risk analysts or procurement officer can make the appropriate updates and resubmit the engagement. In the rejection scenario the Status is set back to Residual Risk Analysis.
- If the Business Unit Risk Manager has accepted the risk analysis but rejects the overall engagement, it is a recommendation to the Business Unit Manager to not approve the overall engagement and associated contract. The status of the engagement is set to Awaiting Approval.
- An approval indicates not only is the risk analysis complete and accurate, but a recommendation is being provided to the Business Unit Manager to also approve the overall engagement and associated contract. The status of the engagement is set to Awaiting Approval.
After the Business Unit Risk Manager provides a recommendation regarding the overall engagement, it now requires a final review by the Business Unit Manager.
- If the Business Unit Manager approves the recommendation from the Business Unit Risk Manager for the evaluation of the overall engagement and associated contract, the engagement is set to Active, and the associated contract is executed. The activation of an engagement is complete and ready for the ongoing due diligence reviews. See Performing Ongoing Monitoring.
- If the Business Unit Manager rejects the engagement, the engagement moves to Cancel/Terminate Engagement.
Note: If configured, the Selected Third Party for the request is automatically updated with the Third Party associated to the Active engagement by a data feed which processes all Complete Supplier Request.
Cancel or end an engagement
Any time an engagement cancellation or ending is requested, the Business Unit Manager, Procurement Officer, Engagement Owner, or Engagement Manager must provide final approval.
- Do either of the following:
- Request to cancel a prospective engagement. A request can be made at several steps throughout the process.
- Request to end an active engagement.
- Reject or approve the cancellation or termination.
- If rejected, the engagement either remains Active and returns to the stage where the cancellation request originated.
- If the request to end the engagement is approved, the engagement status is canceled.