Understanding which service providers represent the greatest “threat criticality” is an essential feature of any effective vendor risk management program This is an absolute necessity for community banks and credit unions to reduce risk and preserve business continuity. Stunk implemented a Vendor Tiering rating system that classifies vendors by risk as part of the Stunk Vendor Management software. This allows financial institutions to quickly assess risk and impose tighter security requirements on vendors as needed.
This improvement to the financial institution vendor risk management program, increases security, and builds a more resilient business with the aid of vendor tiering. Financial institution vendor risk tiering improves vendor security and compliance. It makes it possible for a community bank or credit union vendor management team to identify the vendors that offer the most risk and devote more time and effort to enhancing compliance. This enables a community bank or credit union to streamline vendor risk management and concentrate on the areas that need the most attention, all the while making sure that any vendors are adhering to the controls that need to be put in place.
Vendor risk tiering is essential for achieving the risk goals of financial institution because it gives organizational structure and makes it simpler to evaluate vendors and guarantees that an efficient vendor risk management is in place. Vendor risk tiering will also improve the onboarding process by incorporating a standardized vendor risk assessment as part of onboarding new vendors to a credit union or community bank.
In addition to vender tiering, the Strunk vendor manager organizes all vendor management in secure, web-hosted database, automates inherent and residual risk assessment, generates online vendor surveys based on risk assessments, tracks contracts, renewal dates, key provisions, and service level performance, and complies with all regulatory guidelines.
To learn more about the Strunk Vendor Manager software for community banks and credit unions or to schedule a demo, visit www.strunkaccess.com.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Prestige Standard journalist was involved in the writing and production of this article.