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How mature is your vendor management program?

Mar 29, 2017 by Branan Cooper

A topic we hear a lot at industry conferences and webinars is the maturity of your vendor management program. What exactly does this mean? Let's go through that now...

What a Mature Vendor Management Program Looks Like

As someone who has seen everything from the most basic (or non-existent) program to programs running like a well-oiled machine, here are some hallmarks of a well-managed, mature program:

  • The program is well-documented with robust guidelines that conform to regulatory guidance and is up to date and approved by the board on an annual basis

  • The front line managers know what their role is in vendor management responsibilities

  • The senior leadership is well versed in the performance of the vendor management program

  • The team is adequately staffed and highly qualified to do the job

  • The head of vendor management has reporting responsibilities to the institution’s risk committee and the board

  • The pillars of third party risk management are evident in daily activity

  • There is a governance process for selecting and completing risk assessment work prior to signing a contract

  • Vendor management is not an after-thought

If you find these elements in play in an institution, you know you’re looking at a well-managed and mature vendor management program – one that helps to protect the institution, its leadership and its customers.

And, we've actually surveyed financial institutions and found out where they stand with having a mature program. Download our State of Vendor Management 2017 for more. 

Download Now

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.

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