Question

A manufacturing company recently redesigned its procurement process to speed up vendor onboarding, allowing purchasing managers to approve new suppliers within hours. Six months later, the risk practitioner notices that several onboarded vendors were never screened for sanctions-list or conflict-of-interest issues, though the corporate policy still requires such screening. What is the MOST significant governance concern the risk practitioner should raise?

Accepted Answer

The redesigned business process was implemented without aligning it to existing policy requirements and embedded control objectives

Answer

The purchasing managers were given approval authority that exceeds industry benchmarks for onboarding speed

Answer

The procurement policy should be rewritten to remove the sanctions-list screening requirement to match the new process

Answer

The vendors that were onboarded should be immediately terminated to eliminate the residual risk