Ongoing monitoring runs continuously against the vendor portfolio, ingesting external data signals, adverse media, regulatory enforcement actions against the vendor, disclosed cybersecurity incidents, changes in financial health indicators, and subcontractor relationship changes flagged in vendor communications, and alerting the assigned risk owner when a material signal is detected. The monitoring cadence and signal sources are calibrated to each vendor's criticality tier, with critical vendors monitored more frequently and against a broader signal set than lower-risk relationships.
When monitoring produces a material signal, the agent generates a structured notification for the risk owner that includes the specific signal, the vendor affected, the potential impact on the institution, and a recommended risk rating update or re-assessment action. The risk owner reviews the notification and decides whether the signal warrants an immediate rating change, an accelerated re-assessment, or documented acceptance of the information without rating change. This decision is recorded in the vendor's risk file, maintaining the audit trail that demonstrates active monitoring rather than passive data collection.
