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Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk (Case Study)
Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk (Case Study)
Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk (Case Study)
Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk (Case Study)
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Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk (Case Study)

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Finance Center Federal Credit Union (Financial Center) originated in 1953 to serve …

Finance Center Federal Credit Union (Financial Center) originated in 1953 to serve
the military personnel and civilians assigned to Fort Benjamin Harrison on the east side
of Indianapolis, Indiana. Since then, it has doubled its operating footprint and is now
comprised of over 46,000 members worldwide, making it one of the largest charters
in the National Credit Union Administration (NCUA). For more info: www.nafcu.org/quantivate

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  • 1. Driven by the need to meet NCUA guidelines and reduce operational risk, Finance Center Federal Credit Union (Financial Center) selects Quantivate to help manage all aspects of vendor selection and governance. Quantivate Vendor Management Solution Improves Efficiency and Reduces Risk Finance Center Federal Credit Union (Financial Center) originated in 1953 to serve the military personnel and civilians assigned to Fort Benjamin Harrison on the east side of Indianapolis, Indiana. Since then, it has doubled its operating footprint and is now comprised of over 47,000 members worldwide, making it one of the largest charters in the National Credit Union Administration (NCUA). To sustain this explosive growth, Financial Center needed to bring fresh products to new market segments. Bringing on new partners meant new vendors being leveraged to enable them, in turn introducing more risk to the credit union. With this, Financial Center realized that a much more proactive vendor management solution was required to properly meet NCUA vendor risk management guidelines. Success Story Finance Center Federal Credit Union 7101 East 56th Street PO Box 26501 Indianapolis, IN 46226-050 Contact: William C. Hord VP of Enterprise Risk Management (317) 916-6197 bhord@fcfcu.com © Quantivate LLC 2014 • www.quantivate.com • sales@quantivate.com • 1-800-969-4107
  • 2. Solution Highlights • Meet NCUA guidelines: Financial Center is able to perform everything required for a vendor, including due diligence, risk assessments, contract reviews, relationship assessments, and expiration notifications. • Manage vendor risk: Financial Center is able to complete in-depth risk assessments for all vendors as they come on board, are renewed, and as their business practices change. • Improved business continuity planning: Financial Center is able to integrate its vendor information directly into its overall business continuity planning. • Operate the business with confidence: The Quantivate solution helps the Financial Center be more productive and function safely as it relates to managing risk and meeting a multitude of compliance requirements. This includes bringing a level of comfort in knowing they don’t need to worry about missing something, especially notices for non-auto-renewals of vendor agreements. Intersection of software, partnerships, and NCUA compliance drives decision Three-and-a-half years ago, Financial Center’s vice presidents were individually responsible for vendor management as it related to their own lines of business. Over time, the VPs realized that this was not one of their core competencies. Each of their programs essentially lacked company-wide consistency and a standard of discipline for how vendors were selected, vetted, and ultimately managed. Upon review of the process, they found that the organization was handling each vendor the same, regardless of the level of urgency and risk that it introduced to the business. This, of course, didn’t help Financial Center in terms of meeting NCUA vendor management guidelines. The board of directors decided that it needed to be able to map this vendor criticality against the NCUA requirements as part of a larger vendor management program designed to help mitigate risk. The initial try at this was somewhat hit-and-miss, and Financial Center ultimately was unable to develop a systematic approach to how vendors were managed. After a sizeable amount of due diligence, Financial Center discovered that Quantivate offered the vendor “trifecta” the right software - a very capable service partnership with The Paragon Group - and demonstrated support for NCUA. With this, Financial Center decided to move forward with Quantivate’s Vendor Management solution, a choice that would later drive additional Quantivate offerings to be selected. Easily started, easily customized With more than 70 critical vendors on board (based upon NCUA’s Criticality Matrix), Financial Center needed to first get all of them entered in the Quantivate system. As this was happening, Financial Center realized that some data customizations were necessary. Fortunately, the company found the ability to do this simply by creating fields to accomplish tasks, such as unique accounts payable ID’s or contract disposition fields. As Financial Center started working with the Quantivate system, it began to leverage the due diligence data collection capabilities offered by the vendor’s partner, The Paragon Group. “We get so much more than an NCUA checklist; we are able to succinctly quantify the results of our vendor management program and save tens of thousands of dollars in the process.” — William Hord Success Story: Finance Center Federal Credit Union Challenges and Drivers • Tunnel vision: Financial Center knew it needed to understand its critical vendors for NCUA certification purposes, yet found it lacked the necessary visibility. Vendors were being managed in different business unit silos and the plans were managed via disparate software tools such as Word and Excel. • Inconsistency: At Financial Center, vendor management was falling through the cracks, as the process was largely being administered by multiple people through manual means and ad-hoc controls. In addition, Financial Center found it difficult to make a connection between vendor management and its business continuity program. • Business and data segregation: There was no centralized software in place for Financial Center to store its vendor documents. In most cases, they ended up as physical documents stored in file cabinets throughout the various offices. © Quantivate LLC 2014 • www.quantivate.com • sales@quantivate.com • 1-800-969-4107 “Quantivate’s solution has proven invaluable...” — William Hord
  • 3. “We used the vendor information we got from Quantivate and then collected some additional due diligence data for each of the critical vendors through its partner Paragon,” says William C. Hord VP of Enterprise Risk Management. With Quantivate in place, Financial Center is now able to gain a clear, centralized, and documented understanding of each of its vendors and what it has to offer the business. The solution discourages taking the path of least resistance. Vendors are no longer selected just because they meet some budgetary requirement. This enables Financial Center to ensure it is getting the best deal and the best available service. Most importantly, Financial Center is now able to see and report on the risk introduced to each area of the business, whereas it previously made contract decisions based solely on the vendors’ last 3 years of financial statements and references. Real-time, on-time, in-depth assessments Because the old vendor management process was manual, Financial Center would typically only look at its providers’ balance sheets, cash flows and references. But with the Quantivate solution in place, Financial Center can now take into account each vendor’s business/strategic impact, finances, legal liabilities, regulatory compliance, market dependencies, information security, reputation, human resource policies, relevant operational and transactional considerations, and disaster recovery plans. For example, some vendors can be renewed or replaced in 30 days, while others may take 1 to 3 years to work through the program. If this is not managed properly, a vendor might not get renewed in time, and may have to wait until the next cycle to be approved. Similarly, if a vendor no longer meets minimum requirements, Financial Center can sever any existing relationships with incumbents to mitigate risk and avoid potential damage to the business. For example, Financial Center was hit and miss on its vendors’ insurance statuses. Now, Financial Center consistently tracks all vendors and their insurance requirements and is notified if a renewal hasn’t been received. “Quantivate’s solution has proven invaluable because we initiate the conversation with the vendor from a position of strength,” says Hord. “This enables us to make business determinations of whether to simply seek better pricing from an incumbent or to take on the task of doing a full vendor demo and bid process which in and of itself can be a large resource drain.” Success Story: Finance Center Federal Credit Union Business Benefit • Make smarter decisions: Financial Center has become smarter about the people it does business with, ensuring proper service levels up and down the supply chain, thereby minimizing the risk to its business. • Improve operational efficiency: Financial Center has become more proficient in its vendor management program, saving the company on further expenses as it increases its footprint and introduces new products. • Make real-time decisions: With the additional Quantivate solutions in place, Financial Center is able to make real-time decisions on vendor selection, risk mitigation, and business continuity planning. • Meet regulatory guidelines: The Quantivate solution enables Financial Center to meet regulatory guidelines spelled out in the “NCUA Letter to Credit Unions 07-CU-13: Evaluating Third Party Relationships”; NCUA’s 2007 regulatory guidance sets forth comprehensive regulatory requirements for vendor management by credit unions where NCUA examiners are focusing on the following areas of their vendor management processes during regular examinations: i. A planning process, which assesses the risk in the relationship ii. A due diligence process which results in the credit union developing an understanding of the third party’s organization, business model, and financial health. © Quantivate LLC 2014 • www.quantivate.com • sales@quantivate.com • 1-800-969-4107
  • 4. Success Story: Finance Center Federal Credit Union Contact: Corporate Address: 20250 144th Ave N.E., Suite 300 Woodinville, WA 98072 Mailing Address: Quantivate, LLC PO Box 1504 Woodinville, WA 98072 Telephone: 1-800-969-4107 Email: sales@quantivate.com info@quantivate.com © Quantivate LLC 2014 • www.quantivate.com • sales@quantivate.com • 1-800-969-4107 About Quantivate Quantivate is a provider of web-based Governance, Risk, and Compliance (GRC) software and service solutions to organizations both large and small nationwide. Founded in 2005 with the release of its Business Continuity Software, the company has grown to feature a full suite of modules for GRC including Business Continuity, Vendor Management, Enterprise Risk Management, IT GRC, Internal Audit, and Regulatory Compliance.

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