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ARTICLE · 22 JULY 2021

Federal Agencies Request Comments On Risk Management Guidance For Third-Party Relationships

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On July 13, the Federal Reserve, FDIC, and OCC proposed risk management guidance to help banking organizations manage risks related to third-party relationships, including relationships with vendors, FinTech companies, ...

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Moorari K. Shah
Moorari K. Shah
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On July 13, the Federal Reserve, FDIC, and OCC proposed risk management guidance to help banking organizations manage risks related to third-party relationships, including relationships with vendors, FinTech companies, affiliates, and the banking organizations' holding companies. The proposal is based on existing but disparate third-party risk management guidance from the three prudential regulators, and is intended to promote consistency across the banking agencies. If finalized, it will replace the guidance that each agency has released independently.

The proposal addresses key components of third-party risk management, including:

  • Planning. Identify the banking organization's strategy, risks associated with the business arrangement, how to select, assess, and oversee the third party.

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