Vendor management and its requirements have grown significantly over the past several years. There is now increased attention to subservice providers (fourth parties) and expectations around thorough due diligence, to the point of being invasive. What used to be “nice to have” is now “must do”.
We try to keep up, but it’s not always smooth sailing. It’s hard to have the time and resources needed to accomplish the large task list at hand. So, what are some solutions? Let’s go through that now.
Look Back: Vendor Management 2017
What caused all the latest expectations? Some credit goes to the industry practices like “robo-signing” of foreclosures, the infamous Target breach and the infamous Equifax breach.
But, I also think the real culprit is the regulators’ intense focus on ensuring that any entity involved in the delivery of product or service to the company’s customer is subject to rigorous oversight and due diligence.
In addition, we have to remember that it's not important to do third party risk management JUST because of regulation...it's to keep your company and your customers safe.
The standards have evolved and, therefore, our practices have as well.
The 14 Ways Vendor Management Software and Services Help
No longer is it sufficient to manage hundreds, perhaps thousands, of third parties using Word, Excel and Outlook. That’s where software steps in. Sophisticated tools are now available that allow for automated processes, robust documentation, scheduling reminders and superb reporting. The ideal solutions are highly intuitive workflow driven software tools backed by a team of industry experts.
To pair with software, you also need properly skilled people on your team. The task of reviewing and analyzing the key documents you collect is not easy and involves specific knowledge. They need to be certified, such as considered Paralegals, CPAs, CISSPs, etc. But those people can be hard to find and can be costly. That’s when outsourced vendor management services come in.
By taking advantage of software and services:
- It gives you cloud storage for all things vendor related
- You centralize your vendor management program across multiple lines of business
- Your due diligence and ongoing monitoring tasks are automated and streamlined
- You have an improved area for document storage
- Organization is increased dramatically
- It provides cost management for contracts
- Reporting needed for exams is easy
- Errors are reduced
- Key dates are not missed
- There’s less likelihood of overlooking critical information
- Efficiency is increased dramatically
- Expertise is added to your team to ensure tasks are done properly
- Analysis for documents is done for you
- You receive recommendations for next steps
Leveraging these solutions can help you create a near flawless third party risk program for your institution.
Curious what using outsourced services looks like? Download our work product samples.