Case Study · Banking & Financial Services
$1.4B Federal Credit Union
How a Vendor Management Coordinator Streamlined Oversight of 40–60 Critical Vendors with Fortrex VendManage®
Vendor management transformed from a full-time administrative burden into a structured, manageable program with oversight reduced from 35+ hours per week to about one hour per week.
The Challenge
As Vendor Management Coordinator at a $1.4B federal credit union, this risk professional served as the primary point of contact for third-party vendor oversight.
Although the vendor population was focused, consisting of approximately 40–60 Critical vendors, the effort required to manage vendor risk was significant. Vendor reviews, due diligence collection, and contract tracking were handled manually and inconsistently across departments.
“Even with a limited number of Critical vendors, vendor management was consuming nearly my entire workweek.”
As regulatory expectations increased, the lack of standardized processes made it difficult to demonstrate consistent oversight and defend risk decisions.
Key challenges included:
- Spending 35 or more hours per week managing 40–60 Critical vendors
- Manual and decentralized review processes
- No standardized vendor tiering or assessment framework
- Limited confidence in vendor risk conclusions
- Time-consuming due diligence follow-ups
- Difficulty supporting audits and regulatory exams
The coordinator needed a solution that would standardize execution, reduce workload, and improve defensibility without adding internal headcount.
The Solution
The credit union partnered with Fortrex to implement VendManage®, Fortrex's managed Third-Party Risk Management service.
VendManage® provided an end-to-end operational framework for vendor risk management, covering vendor inventory, risk classification, due diligence, contract oversight, and ongoing monitoring, while aligning with regulatory expectations.
“We needed experienced support that could run the program consistently and help us stand behind it during exams.”
As part of the engagement, Fortrex designed and operationalized a structured vendor tiering and assessment model using Fortrex VendSure®, integrated into the VendorPoint® platform. Fortrex worked as an extension of the credit union's risk team, delivering:
- Centralized vendor inventory with consistent classification
- Vendor tiering into Critical, Material, and Minimal categories
- Risk-based due diligence aligned to NCUA, FFIEC, and regulatory guidance
- Vendor risk assessments tailored to business case, data types handled, and product context
- Contract and renewal oversight to prevent unmanaged risk exposure
- Clear ownership, workflows, and documentation standards
- Consistent execution across all business units
- Exam-ready evidence and reporting
The approach ensured that Critical vendors received appropriate scrutiny while avoiding unnecessary effort on lower-risk relationships.
The Results
Clear, defensible vendor tiering
Fortrex helped the credit union confirm and maintain accurate tiering of vendors as Critical, Material, or Minimal, ensuring oversight efforts were proportional and well-documented.
Risk-based assessments, not one-size-fits-all
Using Fortrex VendSure®, integrated into the VendorPoint® platform, vendor risk assessments were conducted based on each vendor's business purpose, the type of data handled, and the product or service context, eliminating generic reviews.
Significant reduction in management effort
Oversight of 40–60 Critical vendors was reduced from 35 or more hours per week to approximately one hour per week, without sacrificing depth or quality.
Stronger audit and regulatory outcomes
The credit union demonstrated a mature, consistent TPRM program during audits and exams, with clear evidence supporting vendor tiering, assessment depth, and ongoing monitoring.
Reduced operational burden
Fortrex assumed responsibility for documentation collection, review execution, and ongoing monitoring, allowing the coordinator to focus on oversight rather than administration.
Improved executive visibility
Leadership received concise reporting showing vendor risk posture, review status, and exceptions, supporting confident decision-making.
Scalable and sustainable program
The vendor management framework is now efficient, repeatable, and scalable without increasing internal staffing.
“Fortrex VendManage® turned vendor management from a full-time administrative burden into a structured, manageable program. I now have confidence in the process and the outcomes.”
Vendor Management Coordinator
$1.4B Federal Credit Union
Streamline your vendor management
Talk to Fortrex about VendManage® and reducing vendor oversight workload for credit unions and banks.