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Effective and efficient vendor risk management is crucial

Vendor Risk Management is a major source of concern to companies trading world-wide. There are many solutions ranging from dedicated comprehensive services to TMS add-ons.

Dedicated services

Process Unity provide a governance, risk and compliance cloud based  platform covering all types of GRC risk including Vendor Risk. They believe that there are key reports that you need for effective and efficient VRM. “The right reports give you instant insight into program performance, quickly highlight problem areas and help you prioritize where to focus.”:

  1. Vendor Risk Criticality Report: a view of your entire vendor inventory, grouped by criticality tier
  2. Vendor Assessment Status Report: is a live view into the progress your vendors have made with their self assessments. It displays which questionnaires have been completed, which ones are overdue, and the percentage complete on a per vendor basis. 
  3. Issue Summary Report shows issues and their related details
  4. Quarterly Assessment Schedule Report shows the upcoming assessments by vendor, date, and scope. 
  5. Contract Review Status Report provides a quick view of all the important contract dates (refresh, termination, out clauses, etc.) for your vendors in one convenient place
  6. Contract Exposure by Service Type Report: provides a comprehensive view of how much is being spent across the entire organization by service area
  7. Risk by Geographic Location Report provides a snapshot of all the vendors world-wide 

To develop and support such a range of data and reports requires a comprehensive specialised platform.

TMS services

Not everyone needs such comprehensive and dedicated platform for their Vendor Risk Management. Treasury Management System providers have various forms of VRM as part of their solutions. 

BELLIN have just introduced a new feature for its BELLIN GTB Hub global transaction banking app: Verify-Your-Supplier feature which provides a targeted approach to payment fraud, including Payment Diversion schemes, by providing companies and suppliers with an independent verification tool that enables them to store, maintain and verify account master data. This represents a “security-in-numbers” approach to curtailing fraud with the aim of engaging as many suppliers as possible and offering users a complete database that helps them cover all bases.

“Payment fraud is an issue that concerns all companies worldwide. And with everyone exposed, it seems only logical that we join forces in tackling it,” explains Miroslav Sokolovic, Senior Manager GTB Services at BELLIN. “The more comprehensive the accurate data directory, the easier it gets to weed out the fraudsters.”

CTMfile take: Every company is exposed to Vendor Risk. The only issue is how to protect your business.

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