The economic downturn has seen many companies struggle, with many of those sadly closing doors. Others are feeling the pinch which causes them to take unnecessary risks, bend or even break regulations.
While this probably doesn’t include you, how certain can you be that your 3rd party vendors do not fall into this category? It is this question that is resulting in the back-office world of procurement coming closer to the front, leading the way to ensure that your company gets the best possible deal from the safest possible vendor, without falling foul of Mr. Regulator.
What measures are in place to gain vendor oversight across lines of businesses and regions?
At Bank of America Merrill Lynch, a range of activity has been taking place – mainly in reaction to an OCC MRA (Matter Requiring Attention) – in regards to categorising the Bank’s 3rd parties by risk type, ensuring more visible governance and escalation routines are in place, regionally and globally, in respect to vendor risk and establishing new roles across the lines of business to ensure a greater level of oversight and control is in place around vendors.
How are you using this to ensure new (and existing!) regulatory requirements are implemented and upheld?
Taking into account the above, more rigour on identification of outsourced vendors and communication of outsourcing projects, by country, with the country-specific regulator in question being mobilised to reduce the confusion and differences in definition surrounding outsourced vendors and processes.Increased formality and routine between the Supply Chain group, the business areas and the Compliance Partners, in particular, are in place to capture evolving Regulatory requirements.
Do you feel the economic downturn has been one of the reasons for the rise in strategic importance of the CPO?
I think expense management has become more important, year on year, since the 2008 crash and the TARP activity that followed.Combined with operational and vendor risk, in particular, being prioritised across the Banking sector, Sourcing and Vendor Management is now a more relevant topic across all lines of business within the Bank.To get you copy of the full Q&A pleas visit www,procurecon-finance.com