In the dynamic and highly regulated world of finance, maintaining transparency, fairness, and integrity is crucial. This is where the Financial Industry Regulatory Authority (FINRA) plays a vital role. As a self-regulatory organization, FINRA serves as a guardian of the financial industry, providing oversight, setting rules, and enforcing compliance to ensure investor protection and market integrity.
According to Gartner, Vendor management is a “discipline that enables organizations to control costs, drive service excellence and mitigate risks to gain increased value from their vendors throughout the deal lifecycle.” Vendor management should enable organizations to select vendors suited for their business requirements, develop vendor contracts, manage and control vendor performance, and build a sustainable relationship for the long-term efficient business operations.
With new technologies, business expansion and cost focus, the importance of vendor has increased dramatically in the past few years.
GRC helps in each progression of the vendor management lifecycle in an alternate manner. The assistance ranges from better visualization of information and reminders to complete automation.
Vendor management involves selecting suitable vendors, sourcing pricing information, collecting quality details, evaluating amongst different vendors and maintaining relationships with them. Vendor management is the process of minimizing the costs in procuring supplies, maintaining effectiveness and quality and avoiding possible vendor risks. A robust vendor management system can help in increasing productivity, add value to operations and drive long term growth of organizations.