Why US Procurement & Risk Teams Must Embrace KYS Now
For years, Procurement and Compliance teams have relied on Know Your Business (KYB) checks to vet business partners, collaborators, and in some cases, suppliers. After all, before signing contracts, most large enterprises confirm that a company is legally registered, that its owners are who they say they are, and that its finances are legitimate.Yet, while KYB has been critical in preventing fraud and protecting enterprises from costly mistakes, in today’s interconnected world, KYB only tells part of the story. Yes, KYB can confirm that a supplier exists. But KYB can’t tell you how that supplier treats its workers. It can’t uncover whether subcontractors are sourcing unethically. And it can’t guarantee that your supplier aligns with the ESG commitments your board, customers, and investors expect. That’s where Know Your Supplier (KYS) comes in.