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Time a key roadblock to third-party vendor management
MADISON, Wis. (8/19/10)--More than 90% of credit union executives believe vendor management will be a top priority for their CEOs, their third-party auditors and their regulators during the next 24 months, according to a new survey. Federal regulators require credit unions to perform an appropriate level of due diligence on their third-party relationships. Effective vendor management is about time: Too much and too little of it, according to the survey from Abound Resources, a new alliance provider for CUNA Strategic Services. Additional findings are available in the resulting white paper, “The Vendor Management Disconnect: Why Credit Unions Are Unhappy with Their Vendor Management Program.” To read the paper, use the link. Chief financial officers, chief information officers, chief operating officers and compliance executives with executive-level responsibility for vendor management say they are spending more than a quarter of their own time on vendor management--often on a program that doesn’t meet their expectations. A third of those executives are dissatisfied with their programs, the study revealed. The main reasons for their frustration are a lack of time to do what is required; vendors not providing the due diligence documents; and the lack of expertise to evaluate financials and Statements on Auditing Standards No. 70: Service Organizations, or SAS 70s. “Our job is to dramatically reduce the time credit unions spend on vendor management while providing an objective, repeatable and defensible program that meets or exceeds regulatory guidelines,” said Brad Smith, CEO of Abound Resources. Abound Resources’ vmRisk module helps credit unions comply with the ongoing risk monitoring regulatory requirement by providing:
* Vendor risk assessments and risk ratings; * Due diligence document gathering, evaluation and scoring; * vmRisk reports that highlight areas of concern from vendor due diligence documents and suggest risk mitigation strategies; * vmNotify service that updates executives on their vendors’ “bad news”; * Integration with CUNA Strategic Services’ VendorTrack program; and * Compliance guarantee.
Smith is the speaker for the upcoming webinar “Six Ways to Save Time and Improve Compliance with Vendor Management,” scheduled for 3 p.m. CT today, and 10 a.m. CT Tuesday. For more information, use the link.
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