High State of Vendor Risk

The outsourcing boom has resulted in a lot of key processes in organizations being run by vendors. The biggest operational risks that organizations face with vendors is that of privacy of client information, security management, business continuity and process adherence to the defined standards and compliance requirements, Though the outsourced service provider is responsible for providing the service, the ultimate responsibility still resides with the organization.

Regulations on Client Data Privacy

Financial institutions are extensive users of outsourced systems and data management. This has resulted in a lot of client information being with vendors and open to compromise in case the vendors do not have good security management practices. This has resulted in Vendor Risk Management being one of the big risks that organizations face.

A good oversight and continuous process for monitoring all your vendors to identify risks in their process and prevent non-compliance to regulations like GDPR, California Privacy Act is necessary for all organizations.

GRACE Can Help You Monitor Vendor Risks

GRACE Vendor Risk Management helps you manage your vendor relationship in an organized way and track risks as they happen and keep an eye on your high risk vendors. It helps you build your vendor database and keep it updated with the latest information on Contracts and SLAs, Business Continuity and Security Management practices. It helps you conduct comprehensive vendor risk assessments and monitor them on a periodic basis to identify risks and take steps to manage the mitigation The Vendor Risk Dashboard ensures they do not become high risk for your organization

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16Aug 19

Regulation Best Interest (Reg BI): What to expect, and what do you need to do?

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Vendor Database

Keep and manage information on each of your vendors, their status, locations, contacts, services,Contract documents, Service Level Aggrements, Reputation in the market etc and Create a risk score for them

Keep this information updated for easy access

Policies and Procedures

The Compliance team should establish Vendor Management policies, comprehensive risk assessment checklists and establish the process of conducting on going due diligence on each of their vendors to identify risks

Establish Vendor Management Policies and procedures repository including review, release and versioning

Ensure all vendor management staff are aware of all of the required expectations from the organization

Vendor Risk Assessment

You can set up various questionnaires and checklists that can be sent to various types of vendors for a comprehensive due diligence on the vendor to identify the maturity status of their security management process, client data management, business continuity and disaster recovery process as well as their adherence to the compliance requirements of the organization. Set up Calendars for assessments and receive alerts for follow up. You can send out Risk Assessment Questionnaires Online and use Survey like function to collect information Conduct the assessments, record findings and risks. Classify the risks to the level it affects your organization, assign tasks to monitor mitigation

On going Vendor Monitoring

Set up and manage a Calendar of follow up and monitoring for each vendor along with the different information and reports that you need to gather from them on an ongoing basis including at multiple locations

Assign responsibility for follow up within the vendor management group

GRACE will alert the person responsible with email on the relevant date and will show up on their calendar

They can record the finding, attach documents received and mark up risks as they analyze the data they have received

Vendor Risk Management

Identify high risk areas in Vendor processes from the risk assessments and periodic monitoring Assign the risks to staff to define mitigation, and create tasks for follow up with the vendor to ensure the risk is mitigated

Enable risk and task status reporting by responsible person into the GRACE repository to keep track of mitigation status Use the Vendor Risk Dashboard to effectively manage across vendors.

Track incidents in vendors and manage their mitigation Identify trends in risk areas Record risk scores for vendors to identify high risk vendors and see if you may want to find alternates to their services.

My Portal

My portal allows each user to receive the workflow requests for conducting risk assessments, monitor vendors and do attestation of policies and procedures.

The user can record actions taken comments, documents as well as risks identified from the periodic monitoring and send them for review Risk reports and task reports can be sent to the system and well escalation of risks can be done on GRACE

Comprehensive monitoring of Vendors

Ensuring an organized, ongoing and comprehensive review of vendors can help identify risks and manage corrective action early

Keeps Vendors on Track

Diligent followup and identification of risk forces the vendors to deliver safety and security of information they manage and improve their processes

Clear Accountability

By making risks visible and with the ability to drill down to the status of mitigation, accountability for vendor risk management can be established and monitored

Early awareness of Risk Trends

Trends of risk in vendors can be very quickly identified with visual analytics , dashboards and drill downs to prevent it from becoming a high risk to the organization

Single Source of Truth for the Organization

Will all documents, data, reviews, audit trails, analytics and easy to use queries and reports, GRACE becomes the central repository of the Single Source of Truth on vendors for the organization.

Risk reporting becomes Online and Real time

With an integrated web based access anytime anywhere, there is no need for risk reports to be generated on vendors to present to senior management.

Regulatory examinations can be handled with confidence

The GRACE system becomes the proof of vendor risk management practice in the organization to face regulatory examinations

Organization Ownership of Data

Organizations suffer when key risk and compliance staff leaves. The information is scattered if maintained solely by individuals and are lying on disks in various forms. GRACE becomes the single central repository of documents, data and processes enabling continuity even when key people leave the organization

Enormous Cost Savings

Enormous costs savings in unwanted labor for audits and examinations, avoid regulatory fines, legal costs, reputation risks and empowers the organization in managing risks.