WASHINGTON — Be sure not only that a prospective outside vendor is up to the task but also confirm that the task you are asking them to do fits into your strategic plan.
That's one of the key recommendations in the new report by CUNA's due diligence task force.
The report focuses on three core areas: risk assessment and planning, due diligence, and contract monitoring and managing relationships.
"It's similar to managing employees," said Henry Wirz, the panel's chairman and the president/CEO of SAFE CU. "You have to establish an ongoing process for outsourcing significant responsibilities."
"The more critical the relationship is to your credit union, the greater your risk assessment and planning, due diligence and relationship monitoring and control responsibilities become," the task force said in its report.
Bill Raker, the task force's vice chairman, said the goal was to create a template for best practices but noted that it is not a substitute for credit union executives from making their own evaluations. The report is available at www.cuna.org/initiatives.
–cmarx@cutimes.com
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