8 Best Practices Creating/Updating Vendor Management Program Documentation
Are your vendor management documents up-to-date?
Vendor management is constantly evolving and it’s important to keep your program as up-to-date as possible. Whether you’re creating your policy for the first time, or revisiting it, make sure you check out these 8 best practices to help get you started.
Hi – my name is John with Venminder.
In this 90-second podcast, you’re going to learn some best practices for creating, or updating, your vendor management program documentation.
At Venminder, we have a team of third party risk experts who assist with policy and program development on a daily basis.
Whether you’re creating your program for the first time, or revising it as needed, here are 8 best practices I’d like to share with you:
- First, always make sure the program is instructive to senior management and the lines of business.
- Second, as you review your program, confirm it addresses the 6 pillars of vendor risk management which include selecting a vendor, risk assessment, due diligence, ongoing monitoring, contract management and reporting.
- Third, be sure your industry’s relevant regulatory guidance is cited throughout the document. Better yet, even include other industry regulatory guidance if it relates to vendor management and will benefit your program.
- Fourth, ensure the program sets clear expectations regarding the lines of business and third party responsibilities.
- Fifth, make sure it speaks the regulators language. Keep in mind that every year the regulatory requirements change.
- Sixth, the program should be detailed and describe concepts in the policy, but also not as extensive as the procedures, which is a step-by-step guide created after the policy and program are developed.
- Seventh, remember to include the vendors you actively manage and why, as well as which vendors will be written out of scope and why.
- Eighth, update regularly. If new regulatory guidance is released, if there’s a significant change at your organization, if gaps are identified in the work product produced versus what the program states, then these are all scenarios in which you should revise the program documentation. No matter what, you must review and seek re-approval at least annually.
I hope you’ve found these 8 best practices helpful.
Thanks for tuning in; catch you next time!
Subscribe to our Third Party Thursday Newsletter
Receive weekly third-party risk management news, resources and more to your inbox.