Cash flow, adequate funding, leverage, EBITDA, capital...these are just a few of the key elements to your vendor’s ultimate capability to deliver what they promised. Understanding your vendor’s financial health isn’t just an academic exercise. Financial viability is the foundational core that drives all other deliverables from your vendor.
Instead of reading through hundreds of pages of vendor financial statements yourself or assigning your CPAs valuable time, our on staff CPA's can review and summarize the information helping you distill the financial statements down to meaningful information you can act upon.
Your regulator will expect thorough financial reviews on any critical or high risk third party no less than annually. However, if disturbing trends are identified, the frequency of your review should increase to quarterly.
Your regulator will also expect your financial analyst to be qualified and experienced to actually “analyze” the financial data, not just copy and paste key data elements.
FDIC FIL 44-2008
Under regulatory guidance FDIC FIL 44-2008, the financial condition is an important factor that needs to be analyzed by a financial expert, the guidance is clear on requiring the following considerations;
In today’s world of increased outsourced risk and heightened regulatory scrutiny, third party risk management is outgrowing the capacity of existing resources at most financial institutions.
The internet of things along with the rapid movement to the cloud necessitates a whole new set of qualifications when assessing vendor risk. Additionally, the sheer volume of assessments, documentation and reporting that is required on all levels of third parties requires an efficient and organized system to properly manage it all.
The perfect solution combines the qualified experts with a robust software platform to ensure your third party risk program meets regulatory requirements and produces excellent exam results. That is what Venminder delivers!
Download a free analysis on your core processor's financial performance for the 2016 fiscal year. Click here.