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Examination Preparation

What are your Bank or CU's Vendor Management Challenges?

Apr 9, 2015 by Venminder Experts

Vendor management has many challenges, but what are your peers saying is their biggest challenge?

We asked a group of financial professionals just what their biggest vendor management challenge is...

Here were the responses. 

"What is your biggest vendor management challenge?"

"Contracts" 
   - $140+ million credit union

"Keeping track of which documents have been received from each vendor"
   - $550+ million credit union

"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

"Time constraints to do all the things examiners want us to do"
   - $25+ million credit union

"Managing Relationship Managers through Performance Reviews and educating them on the importance of VM"
   - $9+ billion bank
 
"Having the time to put it together and doing it right."
   - $290+ million credit union
 
"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 

"Managing IT - vendors continually sending info to our credit union"
   - $25+ million credit union
 
"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

"Contract negotiations, to include required language from our corporate sponsor. As a result, it takes MONTHS to approve a contract, if it gets approved""Communicating the program to managers with vendor relationships and getting buy in from them"
   - $380+ million bank

   - $160+ million credit union

"Getting those who manage the relationship to update and manage the files"
   - $420+ million credit union

"Knowing what is needed"
   - $150+ million bank

"Security and Risk of information loss"
   - $3+ billion bank

"Tracking contracts/agreements expiration dates"
   - $260+ million credit union 

"Getting necessary information from the large vendors"
   - $270+ million bank

"Receiving financial statements from vendors who don't do SSAE16's"
   - $90+ million bank 

"Obtaining up-to-date SOC1 reports"
   - $110+ million credit union

"The time it takes to gather all the documentation for the annual reviews"
- $960+ million bank 

"Going through the piles of reports"
   - $25+ million credit union

"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

"CFPB changes and ensuring we are compliant" 
   - $50+ billion credit union

  Vendor Management Model Due Diligence Checklist

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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