Contract Management

Who reviews and approves contracts at your financial institution? Is both TPRM and legal involved? How does this process work?

Thanks in advance!

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For us, contracts are reviewed by:

• Legal
• Procurement (vendor and contract management, TPRM)
• Security - for agreements where a third-party will access our systems or data (TPRM)

We have an internal legal department that reviews all contracts. 

TPRM receives the contract review request, logs it, does an OFAC validation, gathers all pertinent documents, and forwards to General Counsel (GC) for review assignment.

For an existing vendor, "gathers all pertinent documents" means MSA or linked terms and conditions within the new contract.

For a new vendor, "gathers all pertinent documents" means risk rating and due diligence requests.

Currently, TPRM does not have vendor (contract) approval authority.

We don't have a formal "legal" department. So, for contract reviews, along with the vendor owner, we have our Risk SMEs review the contract from their area of expertise.