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By Ayesha James, Group Third Party Risk Steward and European Head of ORR, HSBC
What are the risks associated with vendor onboarding that institutions need to manage?
As with any relationship, the earlier things are on the table; the better! Onboarding is a key moment in the customer/ vendor relationship because you have everyone’s attention, you usually have time and the expectation of lots of questions, and both sides have a reasonable view of the scope of the engagement. Anything not asked or addressed now is likely to become an item for attention and remediation down the line so it’s vital to really consider all angles at this point.
Onboarding also sets the tone for the rest of the relationship; and not just in terms of which risks may require a little more attention. If you set out with an open, transparent engagement – that is likely to last. As such, you need to ensure that – as the customer – you are well prepared before onboarding with both a complete list of criteria and a good understanding of the responses that will qualify as good enough or not.