An effective a vendor management and oversight process occurs when the process is assessed from several perspectives. This web based VMO assessment system not only helps to assign vendor risk, but helps to identify the institution’s possible business exposure from a faulty VMO process.
• It uncovers problems before the auditors find them
• It is a path to cost avoidance (fines)
• It lowers consulting / internal auditing costs while improving information
• It reduces risk
Ultimately, this assessment will result in not just compliance but improved business performance.All vendors are classified by function (usually major/minor), risk (low, moderate, high), and other internal criteria (price, length of project, access to data, etc). The combination of these three identifiers will determine the required participation in the RFP process, and the documentation requested for inclusion on the Approved Vendors list.To acquire data about the VMO process, respondents are asked to answer a query that is automatically scored, prioritized, analyzed and sorted to characterize the process and drive corrective action .Once the data is gathered management and problem solving teams are provided with a variety of data displays to understand and prioritize problems for corrective action.