It’s Never a Bad Time for a Supplier Risk Review

Risk management is top of mind for CUs.

Financial services organizations – credit unions, banks, insurance companies, wealth management firms and wire houses – are constantly trying to find a balance between regulatory mandates and expectations, and operational efficiency. Massive supplier data breaches seem like they have become an almost regular occurrence (when they’re reported), customer privacy and data laws are becoming more stringent (GDPR), and predatory behavior by suppliers and vendors is an ongoing issue. Certainly, the porous nature of globalization isn’t making things any easier. With all that to contend with, it’s critical to remember you can pin the blame for risk on third parties, not the responsibility for it.

Whatever supplier management solution you use – SIM, SRM, SRPM, etc. – depends on what your goals and strategy are. Many financial services companies have traditionally used a Supplier Information Management, Supplier Relationship Management or Supplier Risk and Performance Management solution to manage operational and commercial risk – business continuity, credit issues and others. But as regulations mandate the oversight of third-party vendors, the need for more robust tools – or at least the ability to better exploit the tools at hand – is fundamentally changing how companies are approaching their supplier management technology.