Vendor Management
Vendor management refers to the process of evaluating, tracking, and maintaining documentation on third-party service providers. For financial institutions, vendor oversight is a regulatory requirement tied to risk management and information security.
It includes collecting and reviewing SOC reports, maintaining contract files, logging audit findings, and performing regular due diligence. Many institutions use intranet-based systems to organize this data and respond quickly to examiner requests.
Why It Matters
Examiners expect a clear process for managing vendor relationships. Poor documentation or expired contracts can lead to findings. Good vendor management protects the institution from third-party risks and supports NCUA, FDIC, and FFIEC compliance.
Real-World Example
Imagine a credit union working with a new cloud-based lending platform. Before implementation, the CU collects a SOC report, reviews the vendor's contract, and uploads everything into a centralized system. The next year, the contract auto-renew reminder triggers a review, and updated due diligence is logged before the examiner even asks.
How SimplifyIT Helps
- Create vendor profiles with risk and contact info
- Upload contracts, SOC reports, and audit files
- Track due dates for reviews and renewals
- Export vendor records during exams in seconds
Explore vendor management tools in SimplifyIT