Developing an Effective Third-Party Management Program

Companies rely on third parties for a variety of critical services. Identifying and managing those relationships in a systematic way is essential to minimizing enterprise risk and ensuring compliance with regulatory requirements. A MyComplianceOffice (MCO) presentation, “4 Principles of a Strong Third-Party Management Program,” provided a framework for developing a program for managing third-party relationships. Although the primary focus of the program was on the financial services industry, the principles discussed are relevant to outsourcing decisions made by a wide range of organizations and their dealings with administrators, technology vendors, research firms and other key third parties. The program was hosted by Joe Boyhan of MCO and featured Linda Tuck Chapman, president of Ontala, a virtual organization of seasoned professionals in strategic sourcing and procurement. This article summarizes the key takeaways from the presentation. See our two-part series on vendor risk management “Nine Due Diligence Questions” (May 25, 2016), and “14 Key Contract Terms” (June 8, 2016). Also see “Tech Meets Legal Spotlight: What to Do When IT and Legal Slow the Retention of a Third-Party Vendor” (Nov. 30, 2016).

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