Reading Roundup: Vendor Management

Managing relationships with third-party providers is a major concern in the banking, healthcare, retail and tech industries…and beyond. We’ve gathered recent news, insights and opinions on vendor risk management, contract management, third party assessments and more. Help yourself to this week’s reading roundup!

Three Important Points to Remember About Third-Party Risks

By Michael Volkov (Corruption, Crime & Compliance Blog)

Excerpt: “The term ‘due diligence/ is defined to mean ‘reasonable inquiries.’ I know that sounds like mumbo jumbo but it is important to recognize what ‘reasonable inquiries”’does not mean. As an attorney, and a former prosecutor, I know the importance of focusing on burdens of proof—’reasonable inquiries’ does not mean ‘beyond a reasonable doubt,’ nor does it mean by a ‘preponderance of evidence.’ In fact, the standard of ‘reasonable inquiries’ means reasonable questions and follow up. It does not mean boil the ocean.”

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Vendor-Relations Lessons from the KFC Crisis

By Ernie Smith (Associations Now)

Excerpt: “DHL, the global shipping giant, was affected by a crash near one of its delivery depots on the day that it was supposed to take over the KFC contract, according to The Sun. This led to major delays and a significant backlog that prevented chicken from getting to most of KFC’s British locations. The supply-chain crisis was so serious that it forced 700 of KFC’s 870 U.K. stores to close, leading to issues that prevented employees at its stores from working.”

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How to Calm Buyer Fears in the RFP Process

By Katie Wilcox (Guest Post on the RFP365 Blog)

Excerpt: “To take RFP responses to the next level, back up what you say with evidence—particularly evidence outside of your own storyline. How can you get your customers, regulators, or certifying bodies to support your story? Do you have case studies, testimonials and quotes? Can you share evidence from third-party assessments or metrics backing up what you say you can and will do? This carries weight and provides the result of the buyer selecting your organization before they actually choose.”

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Third Party Compliance Systems: Are They Worth It?

By Rebecca Palser (Corporate Compliance Insights)

Excerpt: “Outside of the day-to-day savings for the business, however, technology acts as an insurance policy. Between the fines and settlements, the fees for professional advisors to investigate alleged breaches, the impact on senior management time, and the overall damage to the company’s reputation, the financial costs of breaching anti-bribery or -corruption legislation are huge. In comparison, the costs of adopting and running a third party compliance management system pale in significance.”

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Defining Your Vendor Management Policy

By Sarah Nord (Onspring Blog)

Excerpt: “This is where a Vendor Management Policy is so important. You see, vendor relationships are wide-reaching and touch many parts of the organization, from the department that “owns” the relationship to oversight functions like risk management, compliance, legal, security, procurement and more. An effective vendor management program involves lots and lots of communication (to put it mildly!), and that communication can get out of hand if employees don’t understand the sequence of events. (If you’ve ever been pinged by a business owner 20 times about the status of a vendor contract or risk assessment, I’m sure you get it.)”

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