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Best Practices

What is your biggest Vendor Management Challenge?

Oct 9, 2015 by Venminder Team

Credit unions and banks face many challenges specifically with vendor management. To make sure we keep up with what those pain points are, we continually ask financial institutions' employees to share just what some of those challenges are. Are you also facing any of these?

Here is what people had to say:

"What is your biggest vendor management challenge?"

"Contracts" 
   - $140+ million credit union
 
"Contract management as it relates to cybersecurity"
   - $170+ million bank

"FDIC"
 
  -$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
 
"Automating the VM process from beginning to end"
   - $750+ million credit union
 
"The whole vendor management program. I just don’t seem to have the time to do what is required"
   - $90+ million bank
 
"Time"
   - $25+ million bank
  
"Knowing if what we are doing will satisfy auditors"
   - $5+ million credit union
  
"Getting started"
   - $160+ million bank
   
"Record keeping and follow up"
   - $230+ million bank
  
"Due diligence"
   - $45+ million credit union
   
"Risk assessments on all vendors" 
 - $60+ million credit union
 
"Time" "Risk assessments on all vendors"
   - $15+ million credit union
 
"Process efficiency"
   - $100+ million bank
  
"Time to get it done"
   - $170+ million bank
  
 
"Cutting through the clutter"
   - $400+ million bank
  
"Finding contractual information from my vendors - auto renewal contracts have resulted in my not being able to find out when the contract end dates are, or what the notification period may be for leaving a vendor"
   - $8+ million credit union
  
"Finding the right vendor"
   - $280+ million bank
  
"Doing my third party file updates"
   - $130+ million credit union
  
"We have a large amount of third parties providing vital services to our members - having a better picture of how these firms are doing will assist us in selecting new vendors going forward"
   - $1+ billion credit union
  
"We are very small and there is very little time for vendor management"
   - $6+ million credit union
  
"Keeping them all straight"
   - $30+ million credit union
  
"Annual reviews"
   - $250+ million credit union
  
"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
 
"Record keeping and follow-up"
   - $230+ 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 combined contracts under master agreements"
   -$600+ million credit union
 
"Tracking down all the annual due diligence on a yearly basis and maintaining our files"
   -$150+ million bank
 
"We don't have a program set up yet"
   -$10+ million credit union
 
"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
 
"Distributed vendor relationship owners and ongoing due diligence"
   -$2+ billion credit union
  
"Getting a new, more in-depth program started"
   -$170+ million bank
 
"Establishing a repeatable process"
   -$3+ billion bank
 
 
To read even more challenges, you can reference a post from earlier this year, "What are your Bank or CU's Vendor Management Challenges?"
 
10 Best Practices of Really Good Vendor Managers Infographic
 
Venminder Team

Written by Venminder Team

Venminder has a team of due diligence experts who can significantly reduce your vendor management workload.

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