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8 Vendor Risk Management Tips for a Successful Vendor Management Outsourcing Partnership

2 min read
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Choosing a partner to help with your vendor risk management program is an important consideration and one that requires planning, research and effort. While companies say they’re the perfect partner for everyone, you should still evaluate carefully.

8 Tips For Successful Vendor Management Outsourcing Partnerships

  1. Do your own due diligence. Properly vet the company you plan to outsource.
  2. Partner with a company who has a team of qualified experts on staff. Be sure to consider staff credentials. You want to feel at ease knowing that your third party due diligence reports are being analyzed by qualified professionals (e.g., a CPA performing a financial review or a CISSP performing a SOC review, business continuity or disaster recovery plan review or cybersecurity review).
  3. Make sure the software is configurable but not too customizable. It’s great when a software product is configurable to meet your organization’s needs; however, when software is fully customizable without any guidance it can become too cumbersome and no longer be a value to your organization.
  4. Consider service levels. Evaluate the company’s performance levels and be sure they meet your expectations. Write specific service level requests into the agreement or consider a different provider if they don't meet your requirements.
  5. Find a company who meets regulatory expectations. Partner with a vendor risk management team that continues to update the software as regulatory guidance changes and understands the drill of keeping up with the latest news.
  6. Understand overall cost savings. When outsourcing vendor management responsibilities, your organization will often save on resources, time and cost.
  7. Look for a company that can help standardize your process. Be sure to outsource to a company who helps you adjust your current vendor management process as needed. They should have resources on staff who can provide feedback and guidance.
  8. Bigger is not always better. Choose a company that meets your needs and can augment your staffing but isn’t unreachable when you have specific questions or concerns.

With proper planning and careful consideration, a vendor risk management company can save you time, money, unnecessary headaches and help make your exams go smoothly.

Check out our case studies for a deeper understanding on how outsourcing provides a return on investment (ROI).

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