Are you having regular conversations with your vendors?
Partnerships require open lines of communication. They provide opportunity for timely information sharing, early problem solving, impactful collaboration, and clear visibility to a mutually beneficial road ahead. A road that is paved with trust and respect.
Do you have an advocate that understands your business priorities and challenges?
A true collaborator listens to your voice and initiates course corrections that positively influence the direction of the partnership. Too many times, vendors sprint toward the next new thing, leaving behind the very clients that they built products and services for. Developing tools for clients without their perspective ingrained in the process, can lead to the partnership eroding and becoming irrelevant to both parties. No one wins in the long run.
How are you defining your vendor partnerships?
Over time, outsourced relationships can become one sided — leaning heavily toward the vendor’s objectives. Or perhaps you have a few vendor contracts that were put in place based on a frantic organizational fire drill, then left to sit unattended and underutilized once the emergency passed.
Outsourcing does not equal keeping the function or third-party relationship at arms distance. Financial institution boards of directors and senior management are responsible for managing risk related to outsourced technology service providers. To move forward and be competitive in your industry/market, third party risk management (TPRM) requires inviting your service provider into your process and strategic conversations. Effective TPRM compels organizations and vendors to integrate both teams and work together.
Consider internal business units and how they benefit from working together instead of operating in the dreaded model of silos. Professional outsourcing (and personal outsourcing for that matter) demands frequent review to ensure everyone understands what is working and what is not. Consider how effective our doctor or realtor would be if we don’t fully communicate our current state, our future goals, and our unique challenges as we forge ahead on the road to progress.
TPRM is not a competition to win, it is a path to navigate. It should not be driven by fear of the unknown or shattered by surprises from your outsourced service providers. Success is fueled by participation and engagement of all parties to identify risks and mitigate them. Effective TPRM draws in subject matter experts from your organizational enterprise and outsourced partnerships to build efficient, lasting relationships that are focused on accomplishing your highest priorities and objectives.
More trust. Less fear. Respect always.