7 Traits of Best in Class Vendor Risk Management Solution
Businesses today rely on external services and products as an integral part of performing day to day activities. The commercial benefits of outsourcing are well documented helping run lean business models. Risks posed by vendors is often and after thought whereas it should really be part of the commercial equation. With increased outsourcing of critical business functions, it has never been more critical than ever to assess risks posed by outside vendors and properly manage the ongoing relationship.
This increased interconnectivity is driving regulators and auditors to focus more and more on how businesses manage their supply chain. While regulations in verticals such as financial services mandatorily require institutions to have a comprehensive vendor management program in place, there is no doubt all better run businesses can benefit from a vendor risk management program. As a strategic initiative Vendor Management can help improve efficiency, business stability and profitability by reducing risk and expenses.
There are many methods of performing vendor risk management, from the very basic tools such as excel and word documents to SharePoint or single point solutions that require you to adapt your processes to fit the solution. Performing assessments on an ad hoc basis using such rudimentary tools requires enormous resources, leads to errors often compounding risks and provides very little visibility across your vendor population.
Any robust comprehensive full featured vendor management solution should at a minimum include:
- Flexible and customizable to not only fit your organization and current processes but one that will grow with you and allow you make changes without expensive reprogramming or professional services
- Comprehensive reporting that can be customized to be used by a single user, shared across a role, viewed by the board or utilized by internal or external auditors.
- Ability to import and export data in a desired format including the ability to export copies of reports whether as soft copies or in print already formatted in your business template
- Library of questions and assessments which can be modified to meet current and future needs. Tiered question sets to reduce vendor fatigue with questions that force the user to attach evidence or comment based on response selected
- Workflow, notifications and schedulers that help drive the vendor management cycle ensuring nothing falls through the gaps and authorized approval evidenced for each exception
- Implementation and support from solution vendor to ensure seamless and successful implementation with a single vendor liable to correct all issues
- Clear transparent pricing with guarantees for on-time and budget implementations
To learn more, request a demo, discuss a free trial proof of value or simply start a conversation drop a quick email to firstname.lastname@example.org.
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