Your Roadmap for VRM Software Approval and Implementation
Demands on your third-party vendors are increasing as your organization looks to increase value and innovation. As a chief risk officer or risk manager, you must intensify your vendor risk management (VRM) program to align with this increased demand.
At the same time, what can you do if time and resources are tight? Careful planning is essential. Even if you’ve done the research and found the best VRM software solution, the next step is getting approval. You need a strategic vision for vendor management you can share with key decision makers. We’ve developed a roadmap for implementation that offers tips for approval.
What is VRM Software?
VRM is the process whereby the use of external service providers and other third-party vendors combined do not create the potential for business disruption or have a detrimental impact on the organization’s performance.
VRM software is a key part of this, helping organizations assess, monitor and manage any potential risks that may develop from their interactions with third-party vendors.
Points of Pain in VRM
Today’s risk managers face challenges that go well beyond cost optimization and vendor performance monitoring. New risks arise every day from an ever-evolving risk management industry.
Cloud delivery models, reduced cycle times, and an increasingly digital economy are reshaping the landscape. Regulatory requirements are always in flux. Vendors require more attention than in the past. The C-suite may misunderstand or have low confidence in risk management unless transparency and communication are prioritized. Most importantly, you may not have the proper staff and resources to achieve vendor management goals.
These require radical changes to your vendor management.
Planning Your Next Steps
You need a convincing plan to get approval to execute your VRM program that includes:
- Identifying the Problem
- Planning a VRM Solution
- Presenting it to the Board
- Continuous Review
If implemented correctly, a robust VRM program can increase efficiencies and reduce the challenges of managing vendors.
Benefits of a Proven VRM Software Solution
VRM solutions deliver necessary tools and capabilities for banks, credit unions, financial services companies, and other industries. An easy-to-use VRM software can automate your vendor management process and strengthen your vendor management program.
The right VRM system guarantees you an internal rate of return. A one-time initial setup often costs less than a single full-time employee. And SaaS VRM software is also less expensive than installed solutions. All of this contributes to time for you to devote to more important organizational matters.
VRM is swiftly transforming, both in terms of its depth and reach. To support business goals, drive value through the vendor ecosystem, and minimize exposure to vendor risks, you need a vision and enterprise-wide support.
As risk manager, you are the spokesperson and are responsible for convincing stakeholders that your VRM roadmap, when executed, will optimize your company’s risk culture and deliver ROI. Download the infographic to have a tool to convince your board that VendorInsight® is the best VRM software solution.