Vendor Risk Management As a Service

Vendor Risk Management as a Service

Vendor risk Management

WHAT IS IT?

WHAT IS VRM ?

The goal of Vendor Risk Management is to manage vendor risk. Industry Compliance experts have defined ‘Vendor Risk’, as any person or organization that is connected to a supply chain or is executing business on an organization’s behalf such as a supplier, distributor, consultant, agent and/or partner. Potential vendor threats can expose a company to Operational Risk, Financial Risk, Cyber Security and Reputational Risk.

The supply chain is the life blood of most companies. Dealing with a problematic vendor, such as a supplier in financial difficulty, a sweatshop in China, a manufacturer controlled by a Russian Oligarch, or any company associated with an individual on the US and Global Sanctions list can create a major source of reputation risk, compliance risk and financial exposure for your company.

Through Investigative Due Diligence we can…

  • Identify significant risk factors
  • Protect a company’s reputation

Why you may need to implement Vendor Risk Management

Modevity Vendor Risk Management Services can assist you in protecting your company’s financial position, operations, and reputation going forward.

Our analysts are experts in due diligence open source research and will become a seamless extension to your team. Your organization will not need to implement additional new Vendor Risk Management software in your department and no longer need to provide staff resources support.

MODEVITY HELPS YOU MANAGE YOUR VENDOR RISK BY LEVERAGING THE MOST CURRENT AND ACCURATE DATA WORLD-WIDE.

Modevity has implemented Thomson Reuters CLEAR a cutting-edge investigative platform and other database technologies and open source tools that enables us to quickly obtain a complete picture and evaluate risk of your vendors, partners, and investors. 

With CLEAR’s third-party risk management software, the Modevity team can support our clients to mitigate their corporate and reputational risk through billions of data points of public and private data with a scalable automated process and powerful vendor reports.

  • We will verify vendor identity for accuracy, minimize the potential for fraud, and meet regulatory requirements.
  • We will Identify any risk associated with the supplier you are examining, such as redundant SSNs, OFAC and PEP listings, criminal records, and businesses tied to the same FEIN, litigation, etc.

It is a comprehensive outsource solution for Vendor Risk Managed Services

Our due diligence research expertise supports organizations by mitigating varied company and regulatory risks and utilizes powerful database technology, AI and open source tools to provide real-time reports for the identification of risks when conducting business with vendors across varied departments or operations. We provide our clients with vendor background screening, risk rating, surveys, on-going monitoring, and reporting services.

  • Our Team can configure your risk analysis profile to fit the unique requirements of your organization. We quickly review an array of risk indicators and provide a score and report that immediately identifies if the supplier carries too much risk.
  • Our reports show key information that indicate level of risk associated with a person or business. We save your team valuable time by eliminating the need to plow through vast amounts of data by getting a high-level view of risks associated to your vendors and partners.
  • Our reports provide an additional layer of protection against identity fraud and allow your organization to know when further enhanced due diligence investigation research is needed.

VENDOR FINANCIAL RISK EVALUATION & REPORTING PROCESS

 Learn more about how our outsourced VRM services can help you

Receive Single or Multi-Year Financials from Vendor

Modevity will receive Vendor Financial Reports from either the Vendor directly or from Client on an as requested basis. Financials to include Income Statement and Balance Sheet.

Map Vendor Financials to Modevity Analysis Model

Modevity will review the Vendor financials and enter them into the Modevity Analysis Model ensuring that the major account categories in both Balance Sheet and Income Statement match the provided financials.

Review Critical Financial Indicators

Modevity will review the Critical Financial Health Indicators generated from the Modevity Analysis Model. Indicators include Net Working Capital, Current Ratio, Profit Margin, Debt to Asset Ratio, Debt to Equity Ratio, Revenue Growth and Profit Growth.

Business Credit Report Screen

Business Credit Reports are then pulled for each potential new vendor and reviewed for completeness, duplicate files and false positives.

Indicator Scoring

Modevity will compare all Vendor Critical Financial Indicators to generally accepted Indicators of financial health and provide a score in the form of Green, Red, or Yellow as well as an overall score based on all the indicators. This score should then be used with other Modevity supplied information such as Business Credit Report, TR CLEAR report, and Assessment Questionnaires to make a final decision on level of business risk.

Dashboard and Repository

Modevity will provide Critical Financial Indicators by Vendor in a Custom Branded Dashboard for “At-a-glance review with click-through capability for detailed review. We will include the completed Modevity Analysis Model in the Client Repository for review.

BENEFITS OF VRM

 Learn more about how our outsourced VRM services can help you

Fully Outsourced

With end-to-end vendor risk management model, organizations no longer need to integrate vendor risk management software and provide system support staff

Global Coverage

We practice effective vendor due diligence, risk rating, & reporting services. Shift cumbersome vendor risk assessment tasks to Modevity and optimize your team focus on other strategic and departmental needs

Cost Effective

Modevity analysts become a seamless extension to your team without employee overhead, benefits and costs. In addition, we streamline processes and reduce costs while improving efficiency

Schedule a Call With Us

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VRM FAQ

General Questions

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Any outside entity, individual (e.g., suppliers, vendors, service providers, consultants, partner organization), can be classified as a third party. They are connected to or has access to organizations supply chain or physical locations and needs to be evaluated using due diligence vendor risk ratings reporting and assessment questionnaires and other tools.

It is important to manage third-party risks to make informed risk management decisions and comply with regulatory requirements and organizational compliance policies. Failure to adequately manage third-party vendor risk may increase your organizational exposure to operational risks, major data exposure, financial losses, and significant, and adverse reputational impact.

Modevity provides a comprehensive outsource managed services for client organizations Vendor Risk Management program needs. We will Identify all red flag risks associated with the vendor/supplier in your supplier chain, such as but not limited to OFAC and PEP listings, criminal records, litigation history, liens, judgements, etc.

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