When most bankers and credit union executives think of concentration risk, they think of lending—but concentration risk has a different meaning when talking about third-party vendor management. Regulators are looking at two main concerns: Over-reliance on a single vendor & geographic concentration.
Strategic risk is the possibility that a company doesn’t make decisions that support its long-term goals. Companies that aren’t managed well and make poor strategic decisions may provide sub-par products or services or even close shop.
Vendor risk management is an ongoing process—one that begins with due diligence before a contract is signed and continues with monitoring throughout the length of the relationship. This blog series on the Top 10 risks will help you more effectively address how third-party vendor risk throughout every department in your financial institution. #9 – Operational Risk […]
Mike Lawson of CUBroadcast interviews Ncontracts CEO, Michael Berman, and discusses mergers and acquisitions for credit unions.
Many financial institutions view vendors as a necessary evil, but extending a little trust to vendors goes a long way towards building a bridge to success.
Not every third-party vendor requires the same level of scrutiny, the Consumer Financial Protection Bureau made clear in its October 31 guidance update on risk management for third-party service providers. Supervised banks and non-banks have the “flexibility” to perform an inherent risk assessment on the third-party vendors to “allow appropriate risk management” of these relationships, […]
There is such a thing as too little, too late—especially if you’re a bank that made the mistake of failing to oversee a vendor that didn’t deliver billed services to customers.
Keeping your vendor shortlist a secret may seem like a good idea, but protecting it only serves to limit your options as the buyer.
In offices and on conference calls across America, salespeople are plotting to baffle financial institutions with an acronym created not by regulators, but by marketing personnel. It’s not hard. Compliance and risk management are already mysterious—up there with Big Foot, the Loch Ness monster, the origin of Stonehenge and whether or not your cat actually […]
Today’s financial institution compliance officers have built carefully customized compliance management systems (CMSs) with strong policies and procedures, yet five challenges prevent compliance officers from maximizing the efficiency of an already strong CMS: evolving regulatory expectations one-size-fits-all solutions audit trail documentation antiquated tools limited staffing These problems can be solved with solutions that allow compliance […]