Regulators have raised their scrutiny of critical vendor relationships involving sensitive data. The current FDIC Compliance Examination Manual has 104 items listed for review to evaluate how well an institution manages its vendor-related risk. The regulatory emphasis on vendor-related risk is understandable, as it includes all risks an institution faces directly placed into an environment outside of its direct control.
Your vendor is a partner in ensuring you are able to provide the best to your customers, so your vendor should keep itself ready to provide the best to you. Planning ahead is essential to providing consistent service quality, from business strategies, to software development, and even to preparation for disasters. Miniter Group has developed plans and policies to keep providing our clients with the high levels of service they deserve. These are regularly reviewed to ensure that our clients’ needs continue to be met or exceeded every day.
The 2016 study from the Ponemon Institute found that the average cost of a data breach is $4 million, with the average cost per record that has been lost or stolen from $154 to $158 each. A breach can also bring severe damage legally and to your reputation. Placing your data in a vendor’s care is a matter of significant trust, and your vendor should treat it accordingly. Miniter Group actively monitors for threats and vulnerabilities and maintains consistent data security measures that meet or exceed legal requirements to ensure the safety of your customers’ information at all times.
No one reasonably hopes for a situation where it becomes needed, but insurance is an important protection for not only your vendor, but your institution as well. If your vendor is not properly insured, you face risks of your own, whether the vendor has to suddenly close after a damaging event or an act by the vendor on your behalf results in damages. Miniter Group carefully monitors its risks and maintains insurance to keep our company going through any event, and to keep you protected from service interruptions or the remote chance of errors.
Lender-Placed Insurance for your residential mortgage portfolio delivered from Miniter Group is a cost-effective, compliant approach to transferring this collateral risk. Miniter's Borrower-Centric Insurance Tracking service works with your borrower's insurance agent before the expiration of the borrower's policy. This provides the service a borrower would expect from their lender.
In the event that the borrower cannot maintain insurance with his current broker and their policy cancels, Miniter's lender-placed coverage will be utilized to insure that the borrower and the lender have no lapse in coverage on the collateral. Miniter bills in arrears for only the time that the borrower is without their own insurance. If the borrower's policy is not compliant with the insurance standards defined in the lending agreements, Miniter Group's tracking department will work with the borrower's insurance agent to correct the non-conforming items within the borrower's policy. Borrower-Centric Insurance Tracking eliminates over 90% of the false placements of your borrowers.
Ultimately, even internal controls have a flaw. They are based only on internal perspective. Bringing in external auditors gives you and your vendor the assurance that everything is being protected and maintained exactly as it should be, and that any anomalies can be found and corrected should there ever be any. Your vendor should not only be willing to let independent professionals review their controls, but welcome the opportunity to demonstrate their commitment to best serving your interests. Miniter Group receives a SSAE 16/SOC 1 audit from an independent firm every year to keep us on top of our commitments to protecting your customers’ information and providing you with the highest levels of quality service.