Use Case: Vendor Governance

Alyne provides a scalable option for organisations to digitalise vendor governance and supplier risk management within minutes.

Introduction

Businesses rely on more and more vendors as they continue to shift focus to core competencies and reduce depth in value creation. This does not reduce or increase risk in most cases - it simply reallocates risk to different categories. What used to be a risk in operating IT now becomes a vendor risk, third party risk or outsourcing risk - depending on the terms used in your organisation. A scalable option to identify and evaluate risks resulting from working with vendors is an important capability for many of Alyne’s customers where we have observed some common challenges and success factors.

Common Challenges

  • Focus on Perfect Assessment
    Much time is spent in reviewing and agreeing the perfect assessment with all involved stakeholders. The output can be a lengthy process with questions that have a “design by committee” quality. We suggest rapid iteration and generating quick assurance value instead.

  • Unclear Consequences
    Some vendor assurance or third party risk processes are executed as a “tick the box” exercise, with unclear consequences for identified risks. If thresholds for mitigation and ending the vendor relationship are not defined, the outcome of the process is incomplete.

  • Manual Analytics
    Most third party or vendor governance processes still involve a significant aspect of manual analytics to understand the output of a potentially large number of assessment results. Automating both analysis and insights is a key to process success. 

Success Factors

  • Generate Deep Insights Quickly
    Ask questions that allow insight beyond the immediate question. A great way of doing this is providing multiple unique answer options. This method can replace multiple questions with one.
     
  • Build Relationships
    Enable collaboration throughout the assessment with your vendors. They need to be on your team and close communication can be a great tool to achieve this.

  • Focus on Risk Portfolio View
    Viewing each vendor individually can be relevant for making decisions specific to that vendor, however risk exposure is often only revealed in a portfolio view. Analyse the risk exposure across multiple vendors from various perspectives to gain a better understanding.
PreviousNext
Karl Viertel

Related Posts

Blog thumbnail

Digital Currencies: The Future of Banking

Testing for China's CBDC (Central-Bank Digital Currency), the digital yuan, began earlier this month, which means that we can safely expect to see the world’s first sovereign digital currency rolled out later this year. In this article, we analyse the impact of cashless payments in modern society and look at where the EU stands in the mobile-first banking revolution.
Blog thumbnail

The Challenges with the Conventional Approach to Managing Risk

2020 was a true test of resilience for many businesses. In this crisis, we learned that the importance of proper Risk Management and contingency planning should never be underestimated. In this article, we identify the essential elements that good End-to-End Risk Management should encompass.
Blog thumbnail

Sketching 2020 From a Risk Management Perspective

Effective Risk Management is all about identifying, evaluating and prioritising risks. If 2020 has proven something is that unpredictability and change is certain. When you map out scenarios in order to prepare your contingency plans, you need to ideate out not just the obvious choices of ‘what could go wrong’, but instead determine your response to many different and extreme turn of events that could take place. In this blog article we take a look at this past 2020, to realise how far we have come and how much is yet to be done but above all, to understand how fast scenarios can change: both within your organisation or on a global scale.