Hi – my name is John with Venminder.
Since budget season is upon us, in this 90-second podcast, you’re going to learn 5 tips for budget planning in third party risk management.
According to Venminder’s State of Third Party Risk Management survey, about half of organizations today spend more than $5k on third party risk.
Our team of third party risk experts have worked in the industry for many years. Collectively, they understand the amount of work and effort that goes into the third party risk management planning process.
Here are 5 of my biggest tips that I’d like to share with you:
- First, remind senior management and the board why third party risk management is a strategic advantage. Some reasons that come to mind are:
- It delivers a cost savings by identifying ways to reduce redundancy
- There’s more customer satisfaction since you’re working with reputable vendors who have been adequately vetted
- There are less compliance headaches internally
- And, an ounce of prevention is worth a pound of cure
- Second, create a roadmap that visually shows where the program is today, where you want it to be and where you think it can be by investing in third party risk management.
- Third, consider employee salary expenses. Do a cost comparison analysis. Is it more cost effective to outsource some of the expert reviews, such as a SOC analysis, versus hiring someone in-house?
- Fourth, estimate the cost savings a software and services platform will bring and present the results to the senior management team.
- Fifth, cite regulatory guidance when formally requesting budget approval, as citing the requirements makes your case much stronger.
There are many tips for budget planning in third party risk management. However, these 5 should give you a good head start.
Thanks for tuning in; catch you next time!