Due Diligence and Ongoing Monitoring

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What are some reasons your company excludes due diligence for Attorneys?

  • 1.  What are some reasons your company excludes due diligence for Attorneys?

    Posted 03-29-2021 10:37 AM
    I've reviewed various resources showing some places exclude Attorneys for due diligence and i'm curious how you note that in your vendor management policy/program.  Thank you.


  • 2.  RE: What are some reasons your company excludes due diligence for Attorneys?

    This message was posted by a user wishing to remain anonymous
    Posted 03-29-2021 11:12 AM
    This message was posted by a user wishing to remain anonymous

    In our policy, we have exempt and non-exempt vendors. After initial due diligence at onboarding, exempt vendors are not require to have ongoing monitoring performed. Exempt vendors for us are ones that provide a good/service that does not have access to our systems or NPI (office supplies, florists, gardeners, etc.) or professional services that are regulated by their respective regulatory bodies and do not have access to significant amounts of NPI (public accountants, attorneys, utility companies, etc.). There is some judgment involved, for instance, if a law firm is representing us in a class action lawsuit and will require access to our whole customer base, than it would fall into the non-exempt category for ongoing monitoring (vs a law firm just defending the bank from one or a handful of claimants). All of this rationale is documented in our initial due diligence work papers.