Are you outsourcing your third party risk management functions to a software provider? If so, have you ever stopped and thought about if the company is the right fit for your organization? I encourage you to do so if you haven’t.
While outsourcing can be a great investment, it’s important to evaluate and verify periodically that the company and your organization still have the best possible working relationship. If you don’t, you may no longer be receiving an adequate return on investment (ROI) and it may be costing your organization more to outsource. This could be, for example, due to a lack in work product quality, poor exam results because of the software functionality, more oversight required than planned for, little to no software configurability and many more reasons.
The 10 Questions to Ask About Your Third Party Risk Management Software Provider
Here are some questions to ask yourself:
- Is the relationship a partnership?
- Does the work product being produced align with my organization’s needs and goals?
- Is the customer service up to par? Are complaints rampant?
- Not only customer service, but is the software available at least 99% of the time?
- With that being said, are the overall SLA expectations outlined in the contract being met?
- Is the software exclusive to your industry or does it align will within the industry’s expectations?
- Have you seen exam improvement since partnering with the software provider? In both your exam and their own audits?
- Does the company have experts on staff who have been able to provide you with beneficial feedback to improve your organization’s processes as needed?
- Does the software provider make updates to the system to improve the workflow and stay abreast of regulatory expectations? If so, how often (i.e., quarterly, semi-annually, annually)?
- Finally, is the software configurable?
If you find that you are answering “no” to most of these questions, then the software may not be the best fit for your organization. Ultimately, you want to contract with a software provider who meets your organization’s expectations, has a consultative approach and provides a partnership that you can put absolute trust in.