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14 Ways Vendor Management Software and Services Help

Feb 14, 2018 by Branan Cooper

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:

  1. It gives you cloud storage for all things vendor related
  2. You centralize your vendor management program across multiple lines of business
  3. Your due diligence and ongoing monitoring tasks are automated and streamlined
  4. You have an improved area for document storage
  5. Organization is increased dramatically
  6. It provides cost management for contracts
  7. Reporting needed for exams is easy
  8. Errors are reduced
  9. Key dates are not missed
  10. There’s less likelihood of overlooking critical information
  11. Efficiency is increased dramatically
  12. Expertise is added to your team to ensure tasks are done properly
  13. Analysis for documents is done for you
  14. 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.

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Branan Cooper

Written by Branan Cooper

Branan Cooper is the Chief Risk Officer at Venminder. Branan has nearly 30 years of experience in the financial services industry with a focus on the management of operational and regulatory processes and controls—most notably in the area of third party risk and operational compliance. Branan leads the Venminder delivery team as the third party risk management subject matter expert in residence. Branan also serves as an industry thought leader. He's a member of InfraGard and the Professional Risk Management Industry Association (PRMIA). And, he was selected in 2018 as an advisor to the Center for Financial Professionals (CEFPro) and board member for the Global Sourcing Resource Network (GSRN).

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