Third Party Vendor Audits
Third Party Vendor Audits
Banks, NBFCs, and financial institutions increasingly depend on third-party vendors for services such as loan processing, collections, IT support, outsourcing, and customer service. While outsourcing enhances efficiency, it also introduces risks related to regulatory compliance, data security, service quality, and customer protection.
Third-Party Vendor Audits provide independent assurance that outsourced service providers adhere to contractual obligations, regulatory requirements, and internal governance frameworks. These audits help financial institutions mitigate operational, reputational, and regulatory risks while ensuring effective oversight of vendor relationships.
About This Service
Our third-party vendor audit services support organizations in effectively managing outsourcing risks through independent evaluation of vendor performance, compliance, and governance practices. We assess whether vendors comply with RBI outsourcing guidelines, data security requirements, and agreed service level agreements (SLAs).
We conduct audits across a wide range of vendor activities, including loan origination, collections, tele-calling, IT services, and other support functions. This involves reviewing documentation, testing adherence to KYC/AML requirements, and evaluating the monitoring of customer interactions.
Our audits also examine vendor risk management frameworks, disaster recovery and business continuity preparedness, and data privacy safeguards. We identify gaps that may expose financial institutions to regulatory penalties or reputational risks.
By providing independent vendor assurance, we help clients enhance vendor oversight, strengthen contract governance, and ensure accountability across their outsourcing ecosystem.
Key Features / Scope of Work
Independent audit of third-party vendor operations and processes
Verification of compliance with RBI outsourcing guidelines
Review of service delivery performance against SLAs and contractual obligations
Assessment of vendor compliance with KYC/AML requirements
Evaluation of data security, privacy, and customer confidentiality controls
Review of disaster recovery and business continuity preparedness of vendors
Gap analysis with practical remediation recommendations for vendor management
- Specialized & Bank-Related Audits
- Concurrent Audits (Banks, NBFCs, Financial Institutions, Payment Banks)
- Retail Assets & Retail Liabilities Audit
- Treasury, Forex & Depositories Audits
- KYC (includes Video KYC)/ AML Audits
- Third Party Vendor Audits
- AR Due diligence
- Stock Audits (for Working Capital Financing)
- Revenue & Expense Audits
- Branch Statutory Audit (BSA) & Central Statutory Audit (CSA)
- Audit under RBI/NABARD/CAG Mandates
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