From ABA Banking Journal
“In light of increased outsourcing and third-party involvement in bank activities, the Office of the Comptroller of the Currency and the Federal Reserve recently issued separate guidance on managing third-party relationships and outsource risk. The guidance highlights the potential risks arising from the use of service providers and describes the elements of an appropriate third-party risk management program.
With their recent guidance, regulators have warned that failure to have an effective risk management process in place that is commensurate with the risk and complexity of a bank’s third-party relationships might be an unsafe and unsound banking practice. Banks need to promptly evaluate their current third-party risk management programs in accordance with the new guidance in order to avoid regulatory criticism and potential additional consequences in their next examination.”
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