IHS Markit has announced the launch of the Vendor Management Portal (VMP), a comprehensive solution for vendor risk tiering and vendor management workflow. In combining VMP with its KY3P due diligence service, IHS Markit now offers firms a comprehensive system to centralize the management of third-party relationships, assess and monitor third-party risk and perform vendor due diligence.
According to Celent, a financial services technology research firm, a major bank can have more than 20,000 vendor relationships. With so many dependencies, risk oversight and standardizing controls over a large and diverse population of service providers is a major challenge. Failure to manage vendor relationships effectively creates significant operational, financial, cyber and reputational risks.
“We are thrilled to be the first and only vendor management platform to combine comprehensive inherent risk workflow with a robust data hub of third party and vendor due diligence information,” said Ellen Schubert, CEO of KY3P at IHS Markit. “With our new Vendor Management Portal, KY3P now provides a single, modern tool which bridges the long-standing gap that used to exist between initial due diligence and ongoing due diligence solutions.”
The Vendor Management Portal provides:
Onboarding workflow: standardized vendor onboarding request initiates workflow to determine the necessary due diligence and approvals
Calculation of inherent risk: inherent risk for the vendor product or service is calculated using rules configured by the user, based on due diligence data and other relationship details
Ongoing risk-based oversight: based on inherent risk, the system auto generates and schedules oversight activities
Off-boarding: provides both rule-based and ad hoc off-boarding using a simple workflow to ensure that the appropriate controls are applied
“Investing in infrastructure to enable vendor lifecycle management including the identification and mitigation of risk is essential to us and the industry more broadly, and we were pleased to contribute to the design of the Vendor Management Portal,” said Richard Blore, Managing Director at Goldman Sachs. “Adding the Vendor Management Portal to KY3P creates a powerful solution that will provide a solid foundation for a firm’s vendor risk management program.”