When most people think about a financial institution, they think only about what they see – tellers who take their deposits, the loan officers who process their loans. But just like everything else, there is a lot more that goes on behind the scenes for a financial institution to operate successfully.
One particularly challenging aspect of running a financial institution is managing all of the vendors that contribute to the operations of your organization. Yet, as complicated as it is, this is something that is required by law as financial institutions must address changing accounting and compliance obligations with the emergence of new and evolving regulations from SOX, FFIEC, GLBA, OCC and other Federal agencies. In addition to meeting regulatory standards, if you aren’t practicing proper vendor management, it could be very costly for your institution.
Temenos Vendor Management is a central data repository for all of your vendor information and the business processes associated with them. Managing your vendors throughout the life cycle of the relationship can reduce costs, improve contract terms, increase the value you yield from each vendor, and further reduce your risk.
- By storing the information contained in and copies of all of your contracts, you’ll never find yourself fruitlessly searching through file folders or desk drawers again. The terms of all of your contracts will be at your fingertips. You will receive alerts when these contracts are going to renew so that you can analyze the other data in Vendor Management to determine if each vendor is still the best fit for your institution.
- Any vendors that pose a potential risk to your financial institution in the categories of compliance risk, strategic risk, reputation risk, operational risk, transaction risk and credit risk will be flagged here for your viewing. Risk is calculated based on input of information related to vendor standards, financial condition and your contract by completing questionnaires included in the guidelines.
- The time to realize that you are missing a copy of your core provider’s SSAE 16 is not the minute that the regulators are walking in the door. Vendor Management will alert you if you are missing any documents associated with a vendor that you are required to have for compliance purposes – such as a financial statement or a SSAE 16 report. All vendors missing critical information will continue to be flagged until the proper documents are obtained. You can even set up a vendor representative in the system to upload all the required documents.
- With Vendor Management, you now have an easy way to keep your board members up-to-date with the information they need to make informed decisions. This is extremely important since board member are held personally liable for any non-compliance situations. Quickly and easily generate board reports in a matter of minutes from your desktop with no complicated formulas or processes involved.
As the examiners are increasing their focus on third-party vendor relationships, it is becoming increasingly important that you have a solution in place to manage these relationships. There are too many pieces involved to realistically and effectively manage this process with hard copies and file folders. Temenos Vendor Management can and will change the way you handle your vendor management, providing you with an easy-to-use, organized, efficient and compliant solution.
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