AI Vendor Risk Assessment

The Challenge -  Select Vendors with Confidence for Financial Firms 

Selecting the right AI vendor requires navigating complex technical, regulatory, and operational requirements. We help financial services firms conduct thorough vendor due diligence, so you can adopt AI solutions confidently while meeting FCA, PRA, and emerging regulatory expectations.

We will:

• Assess data governance and privacy practices to ensure your firm's data is protected, properly located, and subject to appropriate contractual safeguards including UK Addendum and Standard Contractual Clauses.

• Evaluate vendor compliance and certifications including FCA/PRA alignment, and ongoing compliance with evolving AI regulations like the UK AI regime and the EU AI Act.

• Examine AI model governance including bias testing, explainability features, human oversight mechanisms, and version control to ensure models are transparent and appropriately managed.

• Review supply chain and third-party risks by mapping sub-processors, data flows, and open-source components to identify hidden vulnerabilities in the vendor's ecosystem.

• Verify risk management capabilities including incident response protocols, insurance coverage, business continuity plans.

• Assess operational readiness through  support capabilities, and the vendor's ability to respond to audit inquiries.

• Provide comprehensive documentation that demonstrates robust third-party risk management 

The Challenge -   Passing Rigorous Due Diligence for AI Vendors 

 Financial services firms require rigorous vendor due diligence before adopting AI solutions. Unprepared responses to complex DDQs cost deals and extend sales cycles. We help AI vendors become assessment-ready to pass client due diligence efficiently and win regulated clients. 

 We will:

• Structure your responses across all critical areas including data governance, supply chain management, AI model governance, risk management, compliance standards, ethical AI practices, and operational support.

• Document your technical capabilities with clear explanations of server locations, data processing facilities, international transfer mechanisms, DPIAs, and sub-processor arrangements.

• Articulate your AI governance framework including your model development lifecycle, bias testing protocols, explainability features, version control processes, and human oversight mechanisms.

• Demonstrate operational readiness with clear articulation of your incident response protocols, insurance coverage, business continuity plans, SLAs, and audit support capabilities.

• Prepare you for financial services clients by ensuring your responses address FCA, PRA, GDPR, and where relevant EU AI Act requirements that regulated firms must verify.

• Create a reusable Due Diligence Template that accelerates your sales process, reduces time-to-contract, and positions your platform as enterprise-ready for financial services clients of any size.