Is your bank having trouble keeping up with all your vendors, their contract events and the emerging risks posed to your bank? If so, you are not alone. Many banks and financial institutions have not yet found an effective process for managing vendor relationships.
Financial institutions are increasingly aware of the regulatory burdens that accompany the use of a third-party vendor. So, in light of these burdens, why do so many institutions still lack a consistent and workable vendor management process? Maybe the budget is already stretched too thin to accommodate more employees and more training. Maybe your existing personnel are already performing multiple tasks and adding another one is just not feasible. Or maybe, like many banks, consistent monitoring of your vendors and their contracts is difficult because the information is not centralized.
Whatever the reason, a poorly managed vendor oversight program can spell trouble for your institution. Financial institutions are under scrutiny and must meet FFIEC, OCC, Federal Reserve and other regulators’ examination requirements. Without a consistent program for managing vendor risk, financial institutions may face non-compliance with FFIEC and other regulators.