A vendor management policy is an essential part of an effective IT risk management plan. A vendor management policy is also a requirement under several regulatory compliance models which affect financial institutions, higher education, healthcare and many other industries.
The Vendor Management Program Template is a complete and comprehensive policy with administrative procedures for a turnkey vendor management program for your compliance and risk management goals.
Join the nearly 1000 customers who have used this 26 page Microsoft Word document that includes explanations and suggestions for customizing the program and 5 sample forms to operationalize for your program.
Based on FFIEC guidelines for compliance in banking, this model should satisfy most other regulatory requirements for managing IT service providers and other IT vendors in other industries , especially those where consumer financial protection is critical.
The Vendor Management Program Template is deliberately comprehensive based on a desire to offer the most complete Vendor Management Program as possible. That way all you have to do is trim it down to just what you need or want.
This approach saves you a ton of time trying to write a policy from scratch or sifting through search results which still requires countless hours of cobbling together something into a coherent document.
Besides saving you time, it enables the broadest use across all industries including banking and financial services, health care, and higher education where the regulatory requirements for IT service providers are very similar.
Template Table of Contents
Here is the table of contents of the Template which follows a policy format.
- Template Instructions
- Conflict Resolution
- Exemptions and Exceptions
- Roles and Responsibilities
- Classifications of Vendor Criticality
- Requirements for New Vendors
- Risk Management
- Vendor Selection
- Ongoing Vendor Monitoring
- Exhibit A: IT Product and Services Vendor Selection Checklist
- Exhibit B: Vendor Risk Assessment Worksheet
- Exhibit C: Annual Review of Vendor Performance
- Exhibit D: Vendor Financial Review
- Exhibit E: Business Impact – Recovery Time Objectives
The Vendor Management Program Template is a digital download available immediately upon purchase via an encrypted link.
Implementing a Vendor Management Program
Depending on the existence or thoroughness of other policies or procedures related to procurement, enterprise governance and compliance simply delete the unnecessary sections or simplify the language to fit your organization’s policy framework. You may even want to discuss with your CFO the option to broaden the program to all vendors, not just IT vendors.
I realize this can seem overwhelming at first because there is a lot to take in especially if you don’t have anything in place today. So consider starting with reading through the template a few times noting the policy areas that sound useful to you right of the bat. Have a discussion with your CFO and compliance officer to develop a shared strategy which may be to get something simple started based on your immediate concerns. Maybe just focusing on high risk vendors that are more critical to your operations then build upon it once you gain some comfort.
Start by taking an inventory of all IT vendors and assigning a criticality rating to each of them. If you don’t already have BIA/BCP data, work with your peers to gather an initial recovery time objective (RTO) and recovery point objective (RPO) for each vendor to help validate the classification. Next focus on the most critical vendors or those representing the greatest risk to the organization. This gives you immediate benefits while allowing you to solidify your vendor management program before applying it to all vendors.
If your organization has additional compliance exposures or special circumstances be sure to incorporate those into your vendor management program. The areas where that is likely to be the case would be from vendors handling payment processing or other forms of financial transactions and from functions which constitutes status as a ‘covered entity’ or ‘business associate’ under HIPAA and HITECH.