Managing vendors is not a one-time event but a continuous process that extends far beyond the initial onboarding. With Protecht's Vendor Risk Management (VRM) module, you can monitor vendors continually to ensure compliance, performance, and risk mitigation. In this blog, we'll explore how Protecht's VRM module supports ongoing monitoring through nine critical areas:
- SLA compliance and performance
- Contract renewal
- Updating certifications, insurance etc
- Ongoing risk management
- Updating due diligence
- Risk assessments
- Risk metrics
- Incident management
- Issues and actions
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SLA compliance and performance
Ensuring that vendors meet their service level agreements (SLAs) is a pivotal aspect of vendor management. Protecht's VRM module allows you to schedule regular reviews, such as SLA and Security, so that your organisation can track key performance indicators and act if a vendor fails to meet SLAs.
Contract renewal
Keeping track of contract renewals is among the most tedious but necessary activity in a vendor risk management program for managing financial risks and ensuring uninterrupted services. Protecht's VRM module makes this simple: it automatically notifies you well in advance of contract expiry dates, providing time to review performance, renegotiate terms or seek alternative vendors if needed.
Updating certifications, insurance, etc.
Compliance with legal requirements, such as certifications and insurance, is essential for reducing liabilities. Protecht's VRM module allows you to input and track mandatory certifications and insurance documents. It also alerts you and your vendors when these documents are near expiration, allowing for proactive updates by the vendor through a simple and secure vendor portal.
Ongoing risk management
Vendors’ risk profiles can change over time, necessitating ongoing risk management. Protecht's VRM module offers dynamic risk monitoring capabilities. You can continually assess and update vendors' risk scores based on real-time data, providing a continuously updated overview of vendor risk landscapes and keeping you aware of how service providers impact your critical operations.
Updating due diligence
Due diligence is not a one-time activity but an ongoing requirement, so your organisation needs to be able to perform regular due diligence checks easily within its VRM solution.
Protecht's VRM module allows you to easily perform and manage due diligence checks by using its integrated Questionnaire tool to easily create and assign questionnaires to your vendors. The Questionnaire tool comes with a library of ready-to-use industry-standard assessment questionnaires from Shared Assessments, as well as the option to create custom questionnaires.
These regular reassessments ensure that your vendor risk has not changed over time, and can still meet the initial conditions and standards set during the onboarding process.
Risk assessments
Regular risk assessments are vital for effective vendor management. Protecht's VRM includes a risk assessment scheduler, allowing you to plan and conduct periodic risk assessments effortlessly. This ensures that vendors continue to comply with your organisation's risk tolerance levels.
Risk metrics
Protecht's VRM module integrates with the core Protecht ERM suite offering which uses a shared library of risks, risk appetite statements, controls, causes, workflow, notifications, incidents, attestations, key risk indicators, and more. This includes built-in analytics dashboards that display risk metrics in an easy-to-understand manner, helping you to identify trends and make data-driven decisions regarding vendor relationships.
Incident management
Incidents with vendors can have adverse effects on your business. Protecht's VRM module is again integrated with Protect ERM’s Incident Management functionality, which allows for the quick reporting and resolution of any issues. This function enables you to log incidents, assign responsibility, and track the resolution process, ensuring that incidents are handled efficiently.
Issues and actions
Finally, it's crucial to have a system for tracking any issues and the actions taken to resolve them. Protecht's VRM module includes actions trackers both for your organisation and for your vendors, which ensures that people are fully aware of the actions that they need to take, and which allows you to log, track, and manage all issues and the corrective actions taken. This ensures that nothing slips through the cracks and that all issues can be addressed in a timely manner.
Conclusions and next steps
Continuous monitoring is essential for successful vendor management. Using Protecht's VRM module, you can monitor and manage your vendors efficiently through every stage of the vendor lifecycle. From SLA compliance to incident management, Protecht provides the tools you need for comprehensive, ongoing vendor oversight.
If you would like to know more about the vendor due diligence process, download our Vendor Risk Management eBook for a detailed step-by-step guide of to build an effective vendor risk management program.
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