MIAMI – Sydel Corporation, a developer of customized information technology solutions for the financial industry, has launched VendorXpert, a risk-management solution that monitors and tracks the validity of third-party providers, vendors and business partners. The new technology will help financial institutions verify that companies and organizations they do business with are trusted entities.
VendorXpert helps financial institutions remain compliant with new legislation, such as Gramm-Leach-Bliley Act’s privacy and information security requirements, Sarbanes-Oxley’s relationship requirements and U.S. Patriot Act anti-money laundering (AML) requirements.
Companies are increasingly realizing that they must take necessary and effective measures to protect themselves and to have a better understanding of their business partners’ viability. Financial institutions are looking for innovative technologies to help address their vendor-related concerns, especially as it relates to fraud. A recent study by the Association of Fraud Examiners found that fraud and abuse costs U.S. businesses more than $400 billion annually, with nearly half resulting from vendor-related fraudulent activity.
VendorXpert monitors the following:
— Due diligence in vendor selection using pre-defined vendor categories with specific requirements and approval workflow.
— Mathematical risk analysis to find areas of exposure with the usage of a vendor and more importantly the termination or disappearance of that vendor.
— Vendor internal control documentation including personnel, financial and operational risk mitigation strategies.
— Vendor agreement, maintenance agreements and escrow requirements.