When relying on third-party vendors, compliance isn’t a static task; it’s a journey. Whether starting the journey or already having some vendor management practices in place, there’s always room to strengthen your approach. Especially with the evolving regulatory demands including the introduction of regulatory requirements from UK PRA Outsourcing and DORA.  How do you know what stage you’re currently at in your compliance journey, and what’s your next step?

In this blog we will explore the stages different corporations are at on their compliance journey. From basic manual compliance to fully integrating advanced technologies, discover what is your next step on your compliance journey.

To dive deeper, download our whitepaper, How to Future-Proof Compliance, for comprehensive guidance for vendor compliance management.

Stage 1: Basic Compliance –

“We’re Keeping Track, But It’s Manual”

In the early stages, compliance efforts often rely heavily on manual processes. This may include using spreadsheets to track vendor information, ensuring you have the basics covered. But with evolving regulations such as GDPR, PRA Regulations and the introduction of DORA, this approach will quickly become unsustainable.

At this early stage, the easiest progression is to remove some manual workload. This will help reduce the risk of error and help to ensure continuous compliance. The first step should be to centralise your vendor management processes. A centralised approach streamlines your data, reduces manual work, and sets the foundation for more advanced compliance strategies.

Stage 2: Intermediate Compliance –

“We Have Processes in Place, But They are Fragmented”

Great! Your compliance processes are set up and working well. Now, it’s time to address the challenges of managing data across multiple systems. To fully implement your processes, having a single source of truth is essential for maintaining visibility over your vendor ecosystem. A centralised tool can bring together fragmented processes, making it easier for your team to stay updated with changing regulations.

Stage 3: Advanced Compliance –

“We’re Proactively Managing Compliance, But Resources Are Limited”

At this stage, you’ve likely implemented a compliance framework that goes beyond basic tracking. This could include an element of basic automation to excel your processes.  In the recent years, we have witnessed a spike in companies implementing GenAI to optimise their workload.  With numerous benefits, both tangible and quantifiable, AI can help to enhance your compliance processes. Especially when it comes to the ongoing battle of regulatory complexity and changes. 

AI and data insights can be game-changers here. Your next step on your compliance journey is to embrace the power of AI-driven tools for enhanced risk management and data insights. AI can assist with contract analysis, risk identification, and even response strategies for emerging risks. Additionally, vendor management dashboards can offer real-time visibility into your compliance status, ensuring you’re always audit-ready.

Stage 4: And Beyond to Future-Proof Compliance!

“We’re Fully Integrated and Ready for What’s Next”

Future-proofing your compliance strategy involves a continuous improvement mindset. This stage is about building resilience and agility to adapt to any new regulations that come your way. By integrating digital solutions and leveraging tools, automation, AI, and analytics, your organisation is ahead of the curve.

To maintain this competitive edge, it is important to continuously monitor regulatory changes and adapt. For an in-depth step-by-step roadmap to streamline your vendor compliance, download our whitepaper: How to Future-Proof Compliance.

About the Author

Nick Francis, Chief Technology and Marketing Officer at Brooklyn Solutions

Nick Francis is a well-established and experienced CxO delivering Digital & Security-focused Transformation through the design, build, and deployment of cost-effective, highly automated industry-leading solutions. With experience working across the private and public sectors in industries such as Financial Services, Insurance, Legal, Utilities, Retail, Public Sector and Government.

Specialised in compliance, risk & control activities in highly regulated industries, standardisation of technologies, streamlining of internal processes and continuous improvement driving consistency and efficiency across an organisation whilst holding Customer, Colleague and Partner experience at a premium.