Monitoring key vendor relationships to mitigate risks

The importance of key vendor relationships requires that retailers and banks monitor their vendor’s business activities and environment as closely as their own, says consultant Brad Keller. "Vendor risk management practices have not kept pace with changes in the vendor-risk environment and do not effectively account for changes in how our vendors operate."

Brad writes, “According to Ernst & Young’s recently released study on supplier risk management , 73% of the companies surveyed rely on individuals in their business units to identify that a vendor has subcontracted some or all of the services they provide. Acquiring information on subcontracting is not part of their vendor-assessment process. In addition, over one-third of the companies that are notified that services have been subcontracted take no action to assess either the subcontractor or the subcontracting process.”

Read more: http://www.bai.org/bankingstrategies/risk-management-and-fraud/risk-management/keeping-track-of-your-vendors <<…>>