Bay Federal Credit Union Third-Party Risk Management Case Study

This case study outlines the third-party risk management challenges faced by Bay Federal Credit Union after reaching $1.1 billion in assets. The institution recognized the need to enhance its focus on the protection and security of third-party vendors and suppliers due to increasing regulatory requirements. Despite audits yielding few actionable recommendations, the credit union sought an affordable cyber ratings tool to implement a Defense in Depth strategy. The case study details Bay Federal's decision to partner with Black Kite to replace a legacy vendor that could not meet their evolving vendor risk management needs. Following a product demonstration and competitive pricing evaluation, Black Kite's continuous monitoring tool was selected. The implementation led to improved vendor inclusion prioritization based on cyber risk appetite, effective collaboration with third parties, and positive feedback from stakeholders regarding return on investment and vendor assessment capabilities.