In this insightful conversation, Charmi Patel, Head of Vendor Risk Management at Israel Discount Bank of New York, highlights the challenges and strategies for managing third-party risk amid evolving regulatory, AI, and cybersecurity threats.

With increasing complexity in vendor relationships and ever-shifting regulatory landscapes, Patel stresses the importance of keeping contract templates up to date through continuous monitoring of regulations like GDPR, NIST, and other industry standards.

The key, according to Patel, is to use technology-neutral language and dynamic clauses that allow for flexibility in compliance, ensuring contracts are future-proof and adaptable to emerging risks.

Patel also dives into the importance of collaboration between legal, procurement, and risk management teams. She advises focusing on outcomes rather than dictating specific processes to vendors, as this approach minimizes pushback and fosters stronger partnerships.

She also points out the critical role of post-contract lifecycle management, recommending centralized contract management systems that track compliance, renewals, and risks, to avoid overlooking vital contract terms. Patel’s approach emphasizes a strategic, transparent, and collaborative framework to mitigate risks while fostering long-term vendor relationships.