ABA Banking Journal - March 2013 - (Page 21)

tech topics Risk ManageMent Fill in the blanks, or automate? Increased scrutiny of vendor risk management may make an automated system a better choice than a spreadsheet. Read the pros and cons Photo IllustRatIon: MInIstR-84/ shutteRstock.coM By John GInovsky, contRIButInG edItoR I t’s a strict regulatory requirement that banks keep close tabs on all their vendors and pay particular attention to the ones that have access to confidential customer data. For many community banks, this has meant the creation and maintenance of spreadsheets that, depending on their complexity, list each vendor and rank them in degrees of risk. Such spreadsheets also can be used to rank the criticality of each vendor to the bank’s operations, giving a measure of the potential risks they may pose to the bank. It seems simple, but as banks grow, they may engage hundreds of vendors and manage hundreds more contracts. It can be a full-time job to keep the spreadsheet squares up to date, accurate, and in accordance with changing regulations. Also, just because a particular vendor may not rank high on operational criticality, it may pose significant security risk due to its access to customer information. Then, when the person to whom this job is delegated and who set up the whole thing leaves the position, things are likely to fall through the cracks. That’s why many banks are starting to migrate from the spreadsheet environment to an automated system. Those that have point to many positives. Once the automated system is set up, it can do everything a spreadsheet system can do and more, and—importantly—can do it better. It can help in overall contract manMarch 2013 | ABA BANKING JOURNAL | 21 http://www.SHUTTERSTOCK.COM

Table of Contents for the Digital Edition of ABA Banking Journal - March 2013

ABA Banking Journal - March 2013
Contents
Chairman’s View
Editor’s Column
The Economy
Bank Notes
Picture This
Don’t let Trojans infiltrate your customers
Pass the Aspirin
Tech Topics
Working smarter, harder, and right
Mobile Banking: 7 keys for success
Compliance Clinic
Compliance Inbox
ABA At Your Service
First Person

ABA Banking Journal - March 2013

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