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Nriskmanagement™
Nriskmanagement is a service of Network Contract Solutions designed
exclusively for financial institutions. Answering a few questions can
immediately determine the value of Nriskmanagement for your institution.
 Why is vendor
management important?
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How do I
effectively manage our vendors? |
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How will vendor management
benefit us? |
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The Importance of Vendor Management
Vendor
management is a hot button issue for banks in the face of regulatory
pressure. Regulations are constantly changing and regulation
enforcement continues to increase in its intensity and frequency.
There are three primary reasons why banks have a heightened interest
in vendor management:
(1)
a
greater reliance on third parties by banks
(2)
regulations regarding data privacy and security; and
(3)
the
increased focus on data safety due to publicized data breaches.
Regulatory
compliance elevates the importance of vendor management from a
department-level process to an enterprise-wide one since members of
the board of directors can be held personally liable for
non-compliance situations. |
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Benefits of Effective
Vendor Management
Effective
vendor management can also yield additional value far beyond reducing
risk and satisfying regulatory requirements. Vendor portfolio and
lifecycle management can increase your net profits, improve contract
terms and reduce costs from audits, and encourage better performance
from vendors. The concept of looking at vendors as part of a total
portfolio allows management to evaluate how to better balance risk
within the portfolio, similar to the way financial and strategy
professionals analyze business portfolios.
How do I effectively
Manage Vendors?
STEP
1:Develop and adopt a vendor compliance management policy. The
development and adoption of such a policy will bring the issue to
the board’s attention, which is ultimately responsible for the
process, and highlight the importance of the program to your entire
team. The policy will also provide a framework around which to
build your risk assessment ratings.Network Contract Solutions provides
clients with a form vendor compliance management policy that each client
bank customizes based on their preferences and needs.
STEP 2:
Manage and
monitor your vendors using Nriskmanagement. Nriskmanagement is
unique because it gives the bank control. It gives banks the option
to manage vendor risk in a way that is tailored to the complexity
of each relationship, as required by the guidelines.
STEP 3:
Respond quickly and efficiently to regulatory and audit inquiries
using Nriskmanagement. Banks must be able to respond quickly and
confidently to the demands of examiners. By simply allowing
read-only access for the examiner, Nriskmanagement gives you peace
of mind knowing that you are inspection ready at a moment’s
notice.
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