Third Party Service Provider Risk Assessment

Vendor management and third party service provider oversight has become an increasingly important area for banks to closely consider and regularly monitor. Banks are responsible for the practices of third parties and may be held accountable for a third party's violations of consumer protection laws and regulations as well as unfair, deceptive and abusive acts and practices. Regulators have increased their focus on third party contracts and activities and are requiring banks to conduct a risk assessment of each third party relationship, put policies and procedures in place for the management of these relationships and maintain documentation of all initial and ongoing due diligence and monitoring.