Sound outsourcing policies and procedures mitigate the risks inherent in third-party vendor management. In coordination with our clients’ initiatives, The BettenField Group assists our clients with the review and implementation of updated, efficient vendor management policies and procedures.
In working with stakeholders to develop detailed outsourcing procedures, The BettenField Group ensures that our clients implement a homogenous vendor management program across departments and business divisions. These procedures include:
- Outsourcing governance
- Vendor procurement
- Servicing standards
- Contract negotiation
- Vendor monitoring and oversight
- Vendor discontinuance
The management of outsourced relationships goes beyond structural and technical issues. To effectively identify, quantify, monitor, and control risk, the policies that oversee the outsourcing process must be consistently applied corporate-wide. These policies create a framework in which the outsourcing process is seen from an end-to-end perspective, with each stage’s risks considered, measured, and factored accordingly.
By working with financial institutions to develop these policies, The BettenField Group ensures these policies address a broad range of factors including, but not limited to, the ability of the outsourcing relationship to facilitate the tactical implementation of the institution’s strategies, the capabilities of the institution to administer the relationship, the necessity of integrating both initial and ongoing risk assessments, and the expected documentation to meet management and regulatory requirements.
The BettenField Group helps develop risk assessment methodology and documentation requirements. Outsourced services increase the operational risks of the institution and may also adversely affect other institutional risks: reputation, strategic, market, or compliance. The risk assessment methodology must consider both the risks pertaining to the outsourced function and the risks pertaining to the service provider itself. Additionally, we help establish documentation addressing the risk assessment, which serves as a guide to compliance concerns and as well as a valuable resource for communicating with regulators.