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Vendor-Due-Diligence-Is-Focus-of-New-CFO-Council-White-Paper

FOR IMMEDIATE RELEASE
Contact: Jennifer Jackson
CUNA Councils, 608-231-4102
jjackson@cuna.coop


Recognizing that some credit unions had experienced losses from third-party relationships they'd entered into, the NCUA issued guidelines in 2007 requiring credit unions to perform due diligence on all business partners. And examiners often ask credit unions for information on their due diligence programs. They want to make sure credit unions have a policy in place for reviewing relationships and that they've identified all third-party relationships-from the core processor to the landscaper-and the criticality of each one.

But while the guidelines require review of all relationships, the level of review for a particular vendor should depend on the level of risk the relationship poses to the credit union. Clearly you'll assess your core processor more thoroughly than your landscaper.

Your due diligence process should thoroughly evaluate potential third parties before you enter relationships with them. It should also include revisiting the partnerships on a regular basis so you'll know if your partners can still provide the support you need.

This white paper from the CUNA CFO Council outlines the due diligence and vendor management process. The paper discusses:

  • Identifying key vendors and their risk levels
  • Gathering information for due diligence reviews
  • Conducting initial and ongoing reviews
  • Tracking and documenting
  • In-house vs. outsourced programs

The paper also includes considerations for small credit unions with limited resources, along with five case studies of credit unions with successful vendor management programs.

CUNA Council members are entitled to complimentary copies of these and more than 200 white papers; non-members may purchase the white papers for a price of $50 per copy. 

The paper is available online in the white paper section of www.cunacouncils.org - select the "CFO" tab.

Press contacts can download the white paper here (until 12/16):

http://resource.cuna.org/dl/f1202OE2Hlx.pdf


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About CUNA CFO Council

The CUNA Chief Financial Officers (CFO) Council is a national self-directed and self-governed organization committed to furthering the skills of financial professionals in the credit union industry through education, networking support, leadership opportunities, and up-to-date information for its members. The CUNA CFO Council is of the six organizations that make up the CUNA Councils, a network of more than 4,750 credit union professionals.  For more information, visit www.cunacfocouncil.org or www.cunacouncils.org.

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