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Risk Assessment & Due Diligence

With stricter NCUA guidelines, it is essential for credit unions to assess the risk for each third party agreement. This portion of the process breaks your third party relationships into categories based upon the complexity of each relationship - for example; high, moderate, and low - with consideration given to the level of exposure, threat likelihood, impact, and more. All risk assessments are developed in accordance with FFIEC-identified risk areas.

Risk assessments are developed in association with a national group specializing in credit union compliance concerns, and templates have been developed with recommended questions pertaining to third party risks by NCUA and FFIEC. These questions have been assigned a weighted value in relation to the level of risk.

Our staff will provide your management team with Ventelligence Risk Assessment and Due Diligence templates and will provide appropriate access levels and extensive training. Your management team completes a risk assessment for each third party vendor relationship, and based upon the results, the appropriate level of due diligence is identified and performed for each vendor. A variety of templates are provided to complete the Due Diligence cycle and are customizable to each credit union. All of the templates have been created with NCUA guidelines, with the intention of protecting the best interests of the credit union and member data. For additional information regarding NCUA guidelines, click on the link at the bottom of this page.

Due Diligence templates include:

Due Diligence Checklist - This is a checklist for credit unions to utilize in the due diligence process which facilitates the organization of critical information pertaining to each third party vendor relationship.
Due Diligence Questionnaire - This questionnaire is utilized to request information from third party vendors regarding their product or service in accordance with the due diligence process by a designated date and time. The Ventelligence team will facilitate this process between the credit union and third party vendors.
Monitoring Checklist - This checklist is for credit unions to utilize in determining the level of due diligence follow-up and periodic reviews required throughout the life-cycle of the contract for an existing third party vendor relationship.
Legal Review Checklist - This checklist is to be utilized a credit union’s legal area to review for key contract clauses and legal review.

Once the Due Diligence activities have been completed, automated triggers can be implemented within Contract Management which will facilitate the monitoring process throughout the life of the contract. Review the Contract Management tab for additional information pertaining to triggers.

NCUA Regulations for Evaluating Third-Party Relationships

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