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Due Diligence

Bank Vendor Management Challenges of 2015 Recap

Jan 1, 2016 by Venminder Experts

Vendor management can be difficult. Throughout 2015 we were curious what specific challenges banks were facing, so... we asked. Here's a list of what banks especially struggled with this year. Are you also facing any of these for 2016?

Here is what people had to say:

"Just one thing?! 1. How big a time suck it has become. I work for a very small community bank and have many duties aside from vendor management. 2. Knowing how to document our process in such a way that you can clearly see what we have done for individual vendors, but also clearly show our overall process."
   - $210+ million bank
"Managing our vendors third party vendors"
   - $220+ million bank
"Managing Relationship Managers through Performance Reviews and educating them on the importance of VM"
   - $9+ billion bank
"Where to draw the line to make sure we're not doing more than we have to with lower risk vendors"
   - $750+ million bank
"Financial analysis"
   - $320+ million bank 
"Culture change for departmental managers. All contracts must be reviewed by Compliance prior to executing contracts. Also, need for better software for vendor tracking"
   - $1+ billion bank
"Aligning the program for a small organization with 3-5 critical vendors in a highly regulated environment (financial institution)"
   - $180+ million bank
"Communicating the program to managers with vendor relationships and getting buy in from them"
   - $380+ million bank
"Knowing what is needed"
   - $150+ million bank

"Security and Risk of information loss"
   - $3+ billion bank
"Getting necessary information from the large vendors"
   - $270+ million bank
"Receiving financial statements from vendors who don't do SSAE16's"
   - $90+ million bank 
"The time it takes to gather all the documentation for the annual reviews"
- $960+ million bank 
"Ongoing monitoring and due diligence maintenance"
   - $2+ billion bank 

"Need to get all of the contracts in one place"
- $350+ million bank

"Updating program to meet regulators challenges"
   - $250+ million bank

"Contract management as it relates to cybersecurity"
   - $170+ million bank

  -$60+ million bank
"Making sure we get it done"
   - $120+ million bank
"Keeping up with it all. Every time I think I have vendor management under control, the bar is raised by the regulators"
   - $1+ billion bank
"Knowing what the examiners are looking for" 
   - $80+ million bank
"The whole vendor management program. I just don’t seem to have the time to do what is required"
   - $90+ million bank
   - $25+ million bank
"Getting started"
   - $160+ million bank
"Record keeping and follow up"
   - $230+ million bank
"Process efficiency"
   - $100+ million bank
"Time to get it done"
   - $170+ million bank
"Cutting through the clutter"
   - $400+ million bank
"Finding the right vendor"
   - $280+ million bank
"Getting management to do it"
   - $250+ million bank
"Receiving all the requested vendor due diligence information from point-of-contact in a timely fashion in order to meet internal risk review due date"
   - $170+ million bank
"Annual reviews"
   -$85+ million bank
"Getting the updated due diligence package"
   -$40+ million bank
"Obtaining SSAE 16"
   -$190+ million bank
"Cost control"
   -$1+ billion bank
"Digesting the data in a simple format to manage the day-to-day risk"
   -$400+ million bank
"Due diligence for mission-critical vendors, including OFAC checks on private entities"
   -$8+ billion bank
"Tracking down all the annual due diligence on a yearly basis and maintaining our files"
   -$150+ million bank
"Making sure we request, receive and follow up with all the right reports for all the types of vendors; when vendors are slow to respond, the whole process is more difficult"
   -$130+ million bank
"Getting a new, more in-depth program started"
   -$170+ million bank
"Establishing a repeatable process"
   -$3+ billion bank 
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Venminder Experts

Written by Venminder Experts

Venminder has a team of third-party risk experts who provide advice, analysis and services to thousands of individuals in the financial services industry.

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