Summary of "The Third-Party Risk Management Lifecycle: Managing Vendor Risk From Start to Finish Webinar"

Webinar Overview

The webinar titled "The Third-Party Risk Management Lifecycle: Managing Vendor Risk From Start to Finish" presented by Jesse Redman and Hillary Jewhurst, focuses on the structured approach to managing Vendor Risk through a Lifecycle Framework. The main financial strategies, market analyses, and business trends discussed include the importance of governance, risk assessments, and performance management throughout the vendor relationship.

Key Financial Strategies and Business Trends:

Governance Structure: Emphasizes oversight, accountability, documentation, and independent reviews as essential components for effective Vendor Risk management.
Lifecycle Framework: Divided into three stages—onboarding, ongoing management, and off-boarding—each with specific risk management activities.
Risk Assessment: Critical to identify inherent risks associated with vendors and continuously reassess these risks throughout the vendor relationship.
Due Diligence: Should be proportional to the identified risks, with a structured approach to gathering and analyzing vendor information.
Performance Management: Ongoing monitoring of vendor performance and risk is necessary to ensure the value of the relationship and compliance with contracts.

Methodology/Step-by-Step Guide:

Onboarding Stage:
- Identify the right vendor and plan the relationship.
- Conduct risk assessments to determine vendor criticality and inherent risks.
- Scope due diligence based on risk levels.
- Negotiate contracts that include necessary risk management provisions.
Ongoing Management Stage:
- Conduct periodic risk reassessments and performance reviews.
- Monitor for new or emerging risks and ensure controls are effective.
- Maintain due diligence documentation and update as necessary.
Off-boarding Stage:
- Execute a formal termination process, including notification and adherence to contractual obligations.
- Develop an exit plan detailing roles, responsibilities, and data management.
- Archive vendor records and ensure all systems reflect the vendor's termination.