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Due Diligence

4 Reasons You Don’t Need Luck for Successful Vendor Compliance

Mar 13, 2019 by Branan Cooper

Vendor compliance isn’t about luck. Ensuring vendor compliance is dependent on how you manage vendor oversight. Here are 4 reasons why.

Read, understand and apply them to your vendor compliance oversight and you may just find a pot of gold – or, better yet, successful vendor compliance – at the end of the rainbow.

Tips and Examples of Vendor Compliance

Here are the 4:

  1. When outsourcing a product or service to a vendor, you should be taking the same efforts to monitor compliance as you would if it was kept in-house. This means evaluating vendor risk, security, company policies and more on a regular basis. Don’t trust that it’ll all be done adequately.

  1. Being diligent and performing reviews means that you’ll know if the vendor is meeting expectations or not. Perform complaint checks, SOC reviews, financial reviews, etc.

  1. Due diligence is done (or should be) during vendor selection and as part of your ongoing monitoring, so you should be immediately aware of what kind of relationship you’re getting into. Always make sure your due diligence is current, and that you’re taking the appropriate steps to analyze the information.

  1. Effective communication leads to a healthy vendor relationship and better compliance. Schedule meetings to speak with the vendor regarding any potential issues that you see. Include this as part of your regular processes and I guarantee you’ll be more prone to knowing if your vendor is letting something slip or not.

Managing vendor compliance is critical to a third party risk management program. Verifying your vendors are meeting regulatory and exam expectations is the best way to ensure that your organization is safe.

Learn the appropriate level of oversight to manage vendor compliance risk. Download the infographic. 

regulatory compliance risk

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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