Hello everyone and thank you for joining me today for our Third Party Thursday podcast. I'm Stephanie DellaCamera, Solutions Consultant here at Venminder. Today we will be discussing some quick tips to help you develop, or revamp, your third party policy, program and procedures.
So, let’s start with the policy:
- The policy should be written at a board level and include the basic broad framework as to how third party risk management is handled.
- Typically, the document is detailed but concise and around 5 to 6 pages.
- The policy should include any relative guidance and be updated as new guidance is released.
- Within the policy, give clear direction on roles and responsibilities to allow your board to help set the “tone from the top”
Next, take into consideration the program:
- The program document is instructive to senior management and the lines of business, setting out in fairly detailed steps what the business units need to know and what is expected throughout the organization to appropriately manage vendors.
- Cite relevant guidance within the program and its relationship to any other compliance related requirements.
- Include information regarding the pillars of vendor management such as conducting due diligence and ongoing monitoring.
- It should support the lines of business but also have flexibility so that it can be added to when your organization contracts with new third parties for products or services.
- The program should describe the concepts in the policy in more detail. Usually the program documentation is 25 pages or more.
Finally, let’s quickly discuss some tips for the procedures:
- The procedures are a step-by-step guide and can be very lengthy. Think of it as a detailed recipe for the person actually performing the job.
- It should be easy to follow so that anyone who reviews the procedures understands and can perform their job responsibilities and arrive at relatively the same conclusion.
- Update the document as systems or practices change. Consider it to be a living document that is constantly changing.
A well-developed policy, program and procedures are all crucial to the success of an organization’s third party risk management department. These are just some quick tips to help get your team started.
I hope you found this podcast helpful. Again, my name is Stephanie DellaCamera at Venminder. If you haven’t already, please subscribe to our Third Party Thursday series.