Vendor Compliance for Credit Unions

Vendor Compliance Monitoring

Jim Vilker, VP Professional Services, AuditlinkEdward Sullivan, CEO, TrustExchange

Copyright 2016 TrustExchange 2

AuditLink is dedicated to making

your credit union more prepared to

meet the ever-changing compliance

requirements



The TrustExchange is a community of businesses who

securely disclose and monitor key

information to increase their trust in

each other.


Together, we provide a complete solution

to design, implement and continuously monitor Vendor

Compliance.


Today, as Vendor relationships grow wider and deeper, standard solution

providers can’t keep up.


Company

Customer

Regulators

Vendor N

Vendor 1

Vendor 2

Typical Compliance Interactions


Credit Union

Customer

Regulators

Marketing Vendor

RiskMitigators

FacilitiesVendor

StaffingVendor

ITVendor

CoreProcessor

Credit Union Compliance


CUSO Compliance Interactions

CUSO

CU 3

Regulators

Vendor3

RiskMitigators

Vendor5

Vendor4

Vendor 2

Vendor 1

CU 4 CU 5CU 2CU 1


Vendor Compliance Lifecycle:

Monitoring AND VisibilitySelection

Implementation

Compliance Performance

Operational Performance

Renewal


Exponential RequirementsNew Requirements are an

Exponential Increase in Activity

• Current Activity and Cost• Due Diligence• Contract Management• Data Collection• Report Compilation• $500-$1,100/vendor /year

• New Requirements• All of the Above• Objective, Subjective and

Operational Data Monitoring• Visibility throughout enterprise• $2,200-$5,000/vendor/year


SCALE EVENT CENTRIC

NO TRUST BUSINESS MODEL

• 40M Companies• Validate 20M/yr• Data Points/yr:

0.5

• Event vs. Process

• Check vs. Monitor

• React vs. Proact• Lagging

hindsight data

• Errors • Not Timely • Not Actionable• Stale Sources

• Fee to Check• Fee to Submit• Fee to Self-

Certify• Fee to

“Manage”

TODAY: 4 Key Problems


EXPONENTIAL SCALE PROCESS THINKING

TRUST DISCLOSURES BUSINESS MODEL

• Monetize Value• Tiered Offering• Account

Management• “Verticalize”

Solutions

• Tiered Disclosures• Key Events • Bona fides • 3rd Party Certified• Custom

Disclosures

• Monitor Over Time• Increased

Frequency• “Gamify” for Data

Quality and Timliness

• “Exponentialize” Events

• “Crowd Source”• Public Data

Sources• Role Based Data• Partner Data

Think Facebook Think WAZE

Think KickStarter Think Salesforce.com

SOLUTION: TrustExchange


Wouldn’t it be Nice If...Monitor ALL Vendors

Custom Compliance

Custom Risk Rank

Alerts PUSHED

{{{

High

Med

Low

•Payments•Clearing•Settlement•Reputation•Operations•Customers•Non-Core•Staffing•Facilities

{{{

High

Med

Low

•Annual Audit•Qtrly Financials•Monthly SLAs

•Annual CPA Cert•Annual Insurance Cert•Qtrly SLAs•Annual Insurance Cert•Annual Contract Review•Annual SLAs


Vendor Compliance

SelectionDue

Diligence

Ongoing Vendor

Monitoring

Objective

Subjective

Operational

HighRisk

MediumRisk

LowRisk

Criteria 1 Criteria2 XXXYYY

QTR Financials Invoice Review Insurance Attny Cert Management



QTR Financials QTR XXXYYY


Customer Reviews

Supplier Reviews Industry HealthYYY

Security Audit MTLY SLA XXXYYY






Compliance Monitored


Vendor Detail


ImplementationLoad

Configure

Curate

Operate

Vendors

Data

Risk

Trust

Customers

Vendors

Certify

Alerts

Actions

Reports

90 Days

Features• Peer Based Rating (Private and Public)• Event “timeline”• Custom Rules and Policies• Custom Categories• Custom Policies• Custom Monitoring Dashboards• Custom Reports and Alerts• Full set of Enterprise features (users,

administrators, roles)Copyright 2016 TrustExchange 19

Applications• Monitor Key Relationships– Customers, Vendors, Partners– News, Key events, Public Data

• Competitive Intelligence• Sales Intelligence• Compliance– “Collaborative Compliance”– Customer Compliance, Vendor

ComplianceCopyright 2016 TrustExchange 20


Stay Tuned• Best practices on– Criticality assessment– Categorization of vendors based upon

risk– Daily monitoring and management of

events– Reporting to • Executive teams• Boards• Regulators

Date post:	13-Apr-2017
Category:	Business
Upload:	edward-sullivan
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Vendor Compliance for Credit Unions

Business