Transforming Vendor Risk Management: How Supply Wisdom Revolutionized Risk for a Regional U.S. Bank

Introduction

A Regional U.S. Bank, a forward-thinking financial institution committed to excellence in risk management and regulatory compliance, operates with a keen focus on providing secure and innovative financial solutions across the United States.

Challenges

• There was a critical need to efficiently monitor key suppliers, especially smaller private companies, which demanded extensive manual effort from the bank's small in-house risk team.
  
  

• The bank’s limited staff assigned to risk analysis and regulatory compliance was overwhelmed, necessitating an automated solution to streamline vendor assessment and risk analysis, and provide timely insights.

Choosing the Solution:

Key Decision-Makers: The Chief Risk Officer and the VP of Vendor Risk Management at A Regional U.S. Bank.

Decision Process: After witnessing substantial success with Supply Wisdom's continuous monitoring of larger public vendors and comparative evaluations that highlighted shortcomings in other products, a regional U.S. Bank chose Supply Wisdom to address new challenges associated with expanding into private credit lending. This choice was driven by two factors. The first factor was Supply Wisdom's unparalleled ability to monitor all 7 risk domains comprehensively. Secondly, the Bank’s risk team was interested in – expanding the types of vendors actively monitored from critical only to include non-critical vendors, such as those in maintenance facilities and to receive information and negative news on these (specifically ESG, compliance, etc.)

The Use Cases:

How Supply Wisdom’s solution was implemented to address both traditional and new use cases for A Regional U.S. Bank:

• Use Case 1: Real-time risk monitoring

Monitoring private credit lenders for any adverse events and providing actionable risk intelligence on small, private companies.

• Use Case 2: Improved regulatory compliance

Utilizing continuous monitoring to demonstrate proactive risk management to regulators, ensuring compliance and exceeding regulatory expectations through real-time risk intelligence

Results and Benefits:

1. Significant ROI and Cost Savings:
Real-time alerts and actionable data from continuous monitoring led to significant ROI and substantial cost savings by dramatically reducing manual labor. This improvement was quantified through saved man-hours and concrete financial figures, showcasing the efficiency and economic impact of the implemented solution.

2. Increased Revenue Potential:
By dramatically reducing the time to assess and onboard new vendors and suppliers from months to days, Supply Wisdom's vendor management solution streamlined operations and provided a competitive edge, allowing the bank to focus on capturing new business opportunities.

3. Regulatory Excellence and Crisis Prevention:
Maintained an excellent standing in regulatory and compliance spheres, earning the admiration of regulators with proactive measures. By leveraging timely insights, potential crises were averted, ensuring that compliance standards were consistently met and surpassed. This proactive approach fortified the company’s reputation and operational integrity.

The implementation of Supply Wisdom's tool improved risk management and led to significant time and cost savings. The tool enhanced risk visibility by continuously monitoring critical targets and identifying a full spectrum of potential risks in real-time.