What are the elements of a Prospective Vendor Questionnaire? Which policies and procedures should you require? What kind of Background Check should you perform? Should you examine the vendor’s training program? What about their regulatory complaints? Anything else?
Underwriting relates to the logic or grading system you use to evaluate a prospective Vendor’s questionnaire, policies, background check results, types and quantity of regulatory complaints, and more.
For your existing vendors, ongoing audits are a requirement. This way, you will be able to demonstrate to regulators that your ongoing vendor monitoring is comprehensive and regular.
What should be included in your audit? Should it differ by vendor type? How frequent should I perform? How should I evaluate the audit results? What should I do if the vendor fails an audit?
Now that you have completed you onboarding elements, underwriting rules and the composition and frequency of you ongoing audits, it’s time to write your 3rd Party Vendor Management Policy. What should it include?