Due Diligence and Ongoing Monitoring

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  • 1.  Exit Plans

    This message was posted by a user wishing to remain anonymous
    Posted 10-09-2023 11:59 AM
    This message was posted by a user wishing to remain anonymous

    Do you maintain formal exit plans for any or all of your vendors? We've included the requirement in our procedures and are now starting the task of actually completing the plans. We are initially working with our critical vendor group, but aren't sure the best way to document these plans.

    We have a general idea of the things that we want to include in the plan - the vendor, at least one possible replacement vendor, key contract components, runway timeline for transition to a new vendor, critical involved parties needed for a transition. But we aren't entirely sure of the best way to document this. 

    If you do have documented exit plans, do you have a template? Are you using an excel document or maybe a Memo? I'd love to hear how your company is handling this and if there is any other information that is important to your company that your including. 



  • 2.  RE: Exit Plans

    Posted 10-10-2023 09:34 AM

    Hello Anonymous! 

    My organization requires an exit strategy for all critical vendors as well as any vendor that is deemed difficult to replace on their vendor risk assessment. We crafted a template that the vendor owner is required to complete that serves almost as a playbook for what would happen in the event of a planned or abrupt termination inclusive of:

    • What the terms of transition assistance in our vendor agreement is.
    • alternate providers who are able to provide the services (current vendors as well as known market providers)
    • estimated costs to transition or insource costs (if feasible)
    • internal resources that would be leveraged or needed (think PMO) to implement a new provider
    • Regulatory, customer and client impacts and the length of time for each scenario (transition to a new provider or insource)
    • Who will communicate to the regulators should there be a delay or customer impact related to the end of the vendor relationship
    • Additional summary/context of the likelihood of a vendor initiated termination

    This exit strategy is reviewed by the VP of TPRM and the SVP of the functional vendor owner and approved. They are recertified annually for critical vendors and the difficult to replace vendors are recertified in line with their assigned due diligence cadence (unless there is negative news or cause for concern that the vendor will not be viable prior to their date of due diligence).   I hope this is helpful! 



    ------------------------------
    Jenn Wilkinson
    Vice President
    Strategic Vendor Management
    Cenlar FSB
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    Original Message


  • 3.  RE: Exit Plans

    This message was posted by a user wishing to remain anonymous
    Posted 10-10-2023 09:51 AM
    This message was posted by a user wishing to remain anonymous

    Following! 

    In your procedures, how did you break down what it entails?


    Original Message


  • 4.  RE: Exit Plans

    Posted 10-10-2023 03:09 PM

    If you shoot me an email I can send you a blank one.



    ------------------------------
    Jenn Wilkinson
    Vice President
    Strategic Vendor Management
    Cenlar FSB
    ------------------------------

    Original Message


  • 5.  RE: Exit Plans

    Posted 11-29-2023 07:45 AM

    We are also starting to formally document our Exit Plans, starting with business critical suppliers.  What do you use as the central repository for exit plans and signoffs (i.e. TPRM solution, Contracts Management, Business Continuity application)?  


    Original Message