US Federal bank regulatory agencies have issued final joint guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies.
The ‘Interagency Guidance on Third-Party Relationships: Risk Management’:
- Describes principles and considerations for banking organizations' risk management of third-party relationships.
- Covers risk management practices for the stages in the life cycle of third-party relationships: planning, due diligence and third-party selection, contract negotiation, ongoing monitoring, and termination.
- Includes illustrative examples to help banking organizations, particularly community banks, align their risk management practices with the nature and risk profile of their third-party relationships.
- Replaces each agency's existing general third-party guidance and promotes consistency in the agencies' supervisory approaches toward third-party risk management.
Read the guidance (PDF).