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Vendor Management: Selection and Oversight of Third Party Vendors

Over the last several years, vendor risk management has become an increasingly important focus for those in the financial services industry. This focus has largely been driven by scrutiny from both prudential regulators and consumer protection focused groups (e.g. CFPB, Attorneys General).

For financial services, in the past, third party vendors were considered satisfactory if they met performance targets and stayed within budget. However, this outlook has shifted to an expectation that third party vendors need to be managed just as closely as internal operations from both a regulatory compliance and performance standpoint.

At Bridgeforce, we have developed a framework to help our clients effectively bolster or implement their third party vendor management capabilities, primarily for collection agencies, attorney networks, and debt buyers (although not quite vendors – similar monitoring is required). We recommend that the framework defined for these high-risk vendor types is utilized across the credit life cycle.

In the full white paper, Vendor Management: Selection and Oversight of Third Party Vendors, best practices and insights related to the key components of an effective vendor risk management framework are detailed. Those components include:

  1. Risk Assessment;
  2. Due Diligence;
  3. Contract Structuring; and
  4. Oversight.

Download the full white paper to read more.

Category: Default Management