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Contract Management

Put a Helmet on Your Financial Institution's Vendor Management

Aug 24, 2016 by Branan Cooper

No serious cyclist would ever dream of riding their bicycle without wearing a helmet. Personally, having been hit by a car twice while cycling, I probably should wear a helmet every time I talk about bicycles. Obviously, I don’t go out riding worried about crashing but I do take the right equipment so that if I do wipe out, at least my skull is well protected.

Vendor management acts as a helmet

In your financial institution, you need to protect your intelligence the same way – you don’t want to go into any new third party relationship worried about how it could all fall apart, but you should at least protect your institution.

What does it mean to protect the institution?

There are 2 key examples that I think of. Make sure you:

a). Have the right information and insurance policies as part of the due diligence process

b). Build in strong mutual protections in every contract, protecting both your institution and the third party

Remember, if you take the right steps ahead of time, if things do fall apart, it still might hurt, but it’s not going to bring the institution down to a halt.

And on that note, I'm off to ride my bicycle down the path of potholes to  avoid in vendor management

Navigating Vendor Management Infographic

Branan Cooper

Written by Branan Cooper

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 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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