Vendor Risk Management
Course Number: VRM1
Course Code: ABA
An overview of the risk considerations associated with the selection, engagement, oversight and termination of vendors by a bank, and a perspective on the current regulatory expectations.
After completing this course, students will be able to:
– Know why financial institutions use third parties and the typical services provided
– Understand typical risk areas and the regulatory content
– Outline the methodology for risk categorization
– Describe the stages in the vendor relationship life cycle
– Identify documentation and record keeping requirements
Audience: Risk managers and business line managers who interact with third-party vendors and need to recognize the potential risks within the legal agreements and the services they provide, especially in situations where an entire bank function is outsourced, multiple bank functions are consolidated to a single vendor, the vendor subcontracts and/or the vendor works directly with the bank's customers.