Vendor Risk Management Application (Coming)
Banks, financial services institutions and fintech often depend on a large number of vendors and service-providers to fulfill their business processes and satisfy their end-to-end operating requirements. Single sourcing puts institutions at risk by making them too dependent on one vendor. On the other hand, multiple sourcing dilutes vendor accountability, and makes vendor collaboration and coordination much more challenging.
In both sourcing models, vendor risks are high, and should be managed and mitigated through a robust Third Party Risk Management (TPRM) or Vendor Risk Management (VRM) approach.
Some of the areas where institutions are outsourcing their processes to third party vendors are:
Customer facing activities
Regulatory compliance activities
Risk and knowledge process management
Types of Vendor Risks
Regulatory & Compliance risks
4th party risks