Regulatory examiners are expecting to see and review your financial institution's vendor management program, which is to include a process for assessing specific vendor risk, vendor selection, contracting, and ongoing oversight. This webinar will demonstrate that implementing a repeatable process will provide consistency and reduce your institution's Compliance Tax by saving you time and resources, including helping to ensure your valuable dollars are spent wisely.
Objectives:
- Understanding of the regulatory requirements for the vendor management program
- High level overview of the key elements
- Provide guidance in developing your program
5. Vendor Management Program Vendor Management Program The responsibility to properly oversee outsourced relationships lies with the board of directors and senior management. FFIEC Outsourcing Technology Services June 2004
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7. The notion of a Compliance Tax The notion of a Compliance Tax
8. What is the Compliance Tax? Compliance Tax ™ : the ever-growing amount of work, resources and costs (internal staffing, consulting fees, training and employee productivity loss) required for a financial institution to meet regulatory requirements Based on Asset Size: 500 million Average amount of employee time spent on compliance activities: 3%
11. Power of a checklist What’s the Checklist Manifesto? Boeing “Checklist Factory” Aviation is the origin of the checklist Boeing develops 100 checklists a year Take weeks to develop, but are adopted by the industry
12. Applying the Checklist Manifesto to Vendor Management Key Factors and Elements
28. Step by Step Directions The What: Vendor Risk Assessments The Who: Operations Officer And When: Annual What: Vendor Performance Monitoring Who: IT Manager When: Weekly Search written procedures for :
29. Step by Step Directions Organizing Checklists: 1 st Oversight Activities Annual Vendor Risk Assessment 2 nd Periodic Activities Monthly and quarterly Review contract renewals 3 rd Routine Activities Daily and weekly Monitoring vendors