Vendor Selection Due Diligence
Chapters in this video
- 0:00 The capability question that frames every selection decision
- 1:17 Standing versus regulatory fit
- 2:00 Incentives versus people
- 2:30 Controls versus resilience
- 3:59 Scaling review depth to risk level
- 4:52 Sub-contractor due diligence and the two triggers
- 5:35 The phantom paperwork exam trap
- 6:10 Rapid-fire exam recap
What this video covers
- The single foundational question of due diligence at selection: is the vendor capable of performing the function
- The six common areas of review (standing, regulatory fit, incentives, people, controls, resilience) and what distinguishes each pair
- How review depth scales with risk, and why business-critical or regulatory functions get more scrutiny than minor support tasks
- When a firm must look through to the vendor's sub-contractors: touching sensitive firm or customer nonpublic information, or touching a critical firm system
- Why the exam trap of a fixed checklist, required standard form, or mandatory number of steps is wrong: the rules prescribe no such paperwork
Read the full lesson, free
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