Sourcing Procurement & Vendor Management Policy - Purpose and Procurement Process Rules

Sep 12, 2026

Sourcing Procurement & Vendor Management Policy defines rules for procuring goods and services and managing suppliers across preparation, approval, execution, and vendor oversight. The procurement approach emphasizes transparency, integrity, fair competition, and accountability, ensuring benefits in expenditure while staying within lawful, ethical, and compliance-focused boundaries. The policy describes key objectives aligned with corporate values and defines core terms such as outsourcing, critical services, internal control functions, tender archiving, privacy matters, and bank data. It also states the affected sectors and units responsible for monitoring implementation with supporting functions.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

Purpose

Definitions

Core terms

Sectors Affected

Policy

General principles

Cost–Quality–Efficiency

Accountability and records

Conflict of interest

Four-eyes principle

Reciprocity

SOURCING PROCUREMENT & VENDOR MANAGEMENT POLICY (For the Purchase of Goods and Services and handling of Suppliers) 1. Purpose The procurement process includes preparation and processing of a need, the purchase approval and execution, as well as the vendor management. It mainly involves: - (1) purchase planning, (2) standards determination / specifications development, (3) supplier research and selection, (4) contract negotiation, (5) supply contract administration (including performance monitoring) The purpose of this policy is the definition of a set of rules governing procurement (the purchase of goods and services) . These rules principally ensure the prevalence of transparency, integrity, fair competition, and accountability throughout the execution of the process. To this extent, the policy aims to maximize the benefit in terms of expenditure on products and services , always within a fair, lawful, and ethical framework. Another key objective of this policy is to showcase our corporate values , attitudes , competencies, and behavior that determine BOC’s commitment and style of compliance with internal and external rules and regulations. 2. Definitions «Purchase of Products or Services» means inter alia the supply of: - (i) Standardized products , such as market information or information on current prices and purchase of office inventory and other goods and consumables; and (ii) Counselling and other services that are not part of the business and investment activities of the institution, including legal advice. «Outsourcing» means the use of a third party to perform services or activities that would normally be undertaken by the institution, now or in the future and does not include the Purchase of Products or Services. «Critical or Important Service or Activity» means the service or activity whose possible improper or inappropriate or failure to execute, would materially impair the ongoing compliance of the institution with the terms and conditions under its license, or the ability of the institution to meet its regulatory responsibilities or it would affect its financial results , its soundness or the continuity of the business of the institution. «Directive» represents The Central Bank of Cyprus’s Directive to Credit Institutions on Governance and Management arrangements in Credit Institutions of 2014 , Appendix 2, Paragraph 21 –‘Outsourcing’ «Internal Control Functions» are consisted of a risk management function, a compliance function, an information security function and an internal audit function. «Law» means the Business of Credit Institutions Laws of 1997 to (No. 6) of 2015. «Tenders Archive» is the recording and archiving system used by SP&VM, relevant to each and every instance of tenders’ process. “Privacy Matters” refer to personal data safeguards assessed through the privacy assessment documents incorporated in the vendor onboarding process in order to facilitate compliance with the General Data Protection Regulation (GDPR) . «Bank Data» is all data processed or created for the bank and its stakeholders (customers, employees, shareholders) 3. Sectors Affected This Policy applies for all BOC units and subsidiaries in Cyprus and abroad (i.e. registered in other countries), wishing to purchase products or services or to outsource services or activities. TC maintains the overall responsibility for monitoring the implementation and effectiveness of this policy in cooperation with SP&VM. 4. Policy The principles governing the procurement process (purchase of goods and services) are organized in three main groups: - A. General principles 1. The Procurement process. All required purchases must follow the provisions of the Sourcing Procurement & Vendor Management Process. 2. Cost – Quality – Efficiency. Received proposals from potential suppliers in response to BOC’s corresponding requests, should not be judged solely on the basis of economic com

FAQs

What is the purpose of the procurement and vendor management policy?

The policy sets rules for procurement of goods and services and for vendor management to ensure transparency, integrity, fair competition, and accountability throughout the process.

Which procurement activities does the policy cover?

It covers preparation and processing of needs, purchase approval and execution, and vendor management, including planning, standards/specification development, supplier research and selection, contract negotiation, and contract administration with performance monitoring.

What units and companies does the policy apply to?

It applies to all BOC units and subsidiaries in Cyprus and abroad that wish to purchase products or services or outsource services or activities, with defined responsibilities for monitoring implementation.

Sep 12, 2026

Upload by Caleb Sterling