CHICAGO (February 2, 2015) – With nearly 58%1 of financial services organizations having between five and fifteen critical vendor relationships and increased focus on vendor controls by regulatory bodies, vendor management is becoming a challenge for banking, insurance and asset management companies. Baker Tilly Virchow Krause, LLP (Baker Tilly) recently held an educational webinar, Understanding IT risks, security, and vendor management, to assist financial services organizations in managing these risks.
“The increased reliance on third-party vendors for data heavy processes makes vendor management more challenging,” said Christopher Tait, principal of risk services in Baker Tilly’s financial services practice. “Organizations are finding that, increasingly, they need more information and assurance from vendors throughout the lifecycle in order to satisfy their compliance requirements.”
49%2 of financial services organizations polled during the webinar have had to terminate a vendor relationship due to vendor performance issues. With multiple critical relationships, vetting and monitoring vendors is extremely important to avoid having to terminate a relationship or deal with potential compliance issues and their financial impact.
The webinar discussed:
- Regulations focusing on third party oversight
- Effective vendor management programs, including components of vendor risk assessment, considerations during vendor evaluation, and pillars of a comprehensive ongoing monitoring program
57.6% of respondents answered “5-15.” Poll question during Understanding IT risks, security, and vendor management on Jan. 21, 2015.
49% of respondents answered “True” in response to whether they have had to terminate a vendor relationship due to poor vendor performance. Poll question during Understanding IT risks, security, and vendor management on Jan. 21, 2015.
About Baker Tilly Virchow Krause, LLP (bakertilly.com)
Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,800 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion.