Automotive Risk Management Partners ARMP

ARMP's Role as a Dealership Compliance Partner

Terry Dortch President, Automotive Risk Management Partners

Key takeaways

  • ARMP was founded in response to the 2003 Gramm-Leach-Bliley Act, when dealers needed a partner to help comply with new regulations.
  • ARMP positions itself as a consulting company that works directly with a dealership's management team rather than simply selling a product.
  • ARMP's approach involves helping dealers identify their specific risk exposure and build a plan to address it in an economical, ethical manner.
  • Most of ARMP's consultants have over 20 years of experience in the automobile industry, including the company's president, who has 40 years in the industry with 20 in retail.
  • ARMP says its goal is to help dealers comply with regulations while still taking care of their customer base and running the business of selling parts, service, and cars.

Summary

Dealership compliance obligations trace back to the Gramm-Leach-Bliley Act of 2003, and the rules, amendments, and addendums built on top of it have kept expanding ever since. That history is the backdrop for this overview of Automotive Risk Management Partners, which positions itself as a single-source partner for dealers trying to keep up with these requirements while still protecting the customer relationships they've invested in building. The video traces how the company evolved from an earlier entity, sold to a private equity firm, into its current form.

For a dealer principal, GM, or F&I director, the practical pitch is that ARMP works as a consulting partner rather than a pure vendor, sitting down with management to weigh risk against reward and build an approach that's economical and ethical rather than one-size-fits-all. Dortch notes that most of the firm's consultants have 20-plus years in the automobile industry, with his own 40 years including 20 in retail, so recommendations account for the realities of moving parts, service, and cars. He also emphasizes personal accessibility, saying he visits dealers on site and takes calls directly, framing compliance help as an open, ongoing conversation rather than a one-time sale.

Transcript

Origins of ARMP after Gramm-Leach-Bliley

Hello, my name is Terry Dortch, president and CEO of Automotive Risk Management Partners. You know, 20 years ago we came into this space, and we came into this space because of 2003, when Gramm-Leach-Bliley came out. There was a definite need for dealers to outsource or find a partner that could help them comply with the various regulations that were being implemented at that time. Since then, there's been an array of amendments, addendums, different rules, and different regulations. We have since then conformed and come to a little different format than we were in the past.

Evolution into a One Source compliance partner

Back then we were a different company. That company was purchased by a private equity firm. Recently we decided that there was a definite need for a company that could come out and produce a One Source partner that could help the dealers comply with all these different regulations, and help the dealers address not only the compliance end of it, but the piece that deals with the consumer themselves, and makes sure that the dealer is doing things in a proper manner, and that the dealer is taking care of the customer base that they've spent so much money and so much time creating.

ARMP's consulting approach to risk and reward

Now the difference between us and other vendors out there in this space is that we truly are a consulting company. We're going to come in and we're going to actually work with your management team and consult with them and define where your risk rewards are. It's like anything in business, you have to make a business decision at times, and you have to decide what's worth spending money on, what's not. You have to decide how much risk is involved, how much risk is not. We're going to help our dealers and our customers to identify those risks and establish a game plan to address them in an economical, ethical manner.

Industry experience behind ARMP's consultants

So our company really understands the dealer, for existence, for example. Most of our consultants have been in the automobile industry for in excess of 20 years. Myself, I've been in it for 40, 20 of that was in the retail space. We understand what it is to take it up, we understand what it is to try and incorporate some sort of process or procedure while still trying to do the ultimate goal, which is sell parts, service, and sell all right cars. And so in that whole mix, we're able to come in, work with your management team, define what needs to be done in order to not only comply with the rules, but take care of the customer base that you're trying to take care of, as a businessman, as a business, you know, as a business in itself.

Invitation to contact ARMP directly

So if you have any questions, if you'd like to talk to us, just give us a call at the phone number listed on the screen here. I'll be more than happy to talk to you. The difference is the president of the company will talk to you anytime you want. We do, I go on site, I visit our dealers, so it's not like there's any closed doors in our environment. Please feel free to ask any questions, you don't necessarily have to call to buy anything. So thank you.

Questions this video answers

Why did ARMP get into dealership compliance consulting?

ARMP entered the space around 2003 when the Gramm-Leach-Bliley Act came out and dealers needed a partner to help them comply with the array of regulations being implemented at that time, along with the amendments and rules that followed.

How is ARMP different from other compliance vendors?

ARMP says it is a true consulting company that works with a dealership's management team to define risk versus reward, rather than just selling a service, and helps dealers establish a game plan to address risks in an economical, ethical manner.

Does ARMP understand the day-to-day realities of running a dealership?

ARMP says most of its consultants have over 20 years of experience in the automobile industry, and the company's president has 40 years in the industry with 20 in retail, giving them an understanding of what it takes to incorporate compliance processes while still selling parts, service, and cars.

Can dealers talk directly to someone at ARMP with questions?

Yes, the president of the company says he will talk to dealers anytime and visits dealers on site, noting there are no closed doors, and that dealers can call with questions without needing to buy anything.

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Covered in this video

  • Gramm-Leach-Bliley Act
  • dealership compliance consulting
  • risk management