NCUA looking deeper into vendor management in 2019

According to NAFCU, National Credit Union Administration examiners are paying extra attention to vendor management and outsourcing processes in 2019.

NCUA stated it would focus on the “oversight of service provider arrangements to ensure credit unions implement effective risk-based supply chain management.”

They look for three major aspects to be addressed in evaluating third-party arrangements: Risk Assessment and Planning, Due Diligence, and Risk Measurement, Monitoring and Control.

NCUA has also identified due diligence, contract issues and legal review as potential problem areas. Examiners are expecting credit unions to negotiate their agreements to reflect the credit union’s needs and arrangements, rather than simply accept every contract as written.

Maple Street’s negotiation process includes each of these areas, providing a complete end-to-end vendor management process.

Maple Street also offers a couple of key services to make passing your exam and due diligence reviews a breeze.

  • Exam Planning kits
  • Street Smart Review kits

Exam Planning kits are a way Maple Street helps identify any potential issues with an upcoming exam, providing insight and assistance in making sure everything is covered for your exam, as well as assistance with the exam itself, at no additional charge.

Street Smart Review kits include summaries of the available vendor internal control information, statement summaries, insurance summaries and other information that will make short work of due diligence.

To find out more about how we can help you pass your exam and save time with due diligence chat with a Maple Street professional at 800-513-6839.

Read the full article from NAFCU by clicking the button below.