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Vendor Management Risks and Regulatory Requirements

With stringent regulations and increased examiner scrutiny on vendor management programs, community banks and credit unions need to understand how to implement, maintain and continually improve the methods they use to manage their vendor relationships. Recent surveys reveal the necessity for a simple, yet deliberate approach, which involves back-to-basics policies and procedures as well as involvement from various employees. Examiners expect to see a vendor management program that can easily report on how the bank rates risks, documents risk mitigation plans, and ensures compliance with FFIEC regulations.