Complying with regulations on third-party oversight represents an urgent imperative for banks and financial services firms. Oversight of any given third-party provider involves a number of functions and business units with widely varying priorities and areas of focus, and requires clearly delineating lines of responsibility and ownership.
A Vendor Management Office (VMO) can play a critical role in addressing the challenges of regulatory compliance. Uniquely positioned to facilitate communication and transparency among myriad entities, the VMO can help establish a sound compliance framework as well as manage multiple touch points and ensure process discipline over the long term.
This ISG white paper describes recent developments in the regulatory space and their implications for financial services organizations. The author analyzes the process of leveraging the VMO to establish an effective foundation for compliance, focusing on the specific phases of Planning, Due Diligence and Contract Negotiation.