FRB, FDIC And OCC Propose Risk Management Guidance On Third-Party Relationships

The Federal Reserve Board ("FRB"), the FDIC and OCC (collectively, the "Agencies") proposed risk management guidance for the third-party relationships of banking organizations.

The proposal is based on the OCC's existing third-party risk management guidance. The proposal is intended to promote consistency across the banking agencies. If finalized, it will replace the guidance that each agency released independently.

The proposed guidance would:

• provide banking organizations with a suggested framework for the development of third-party relationship risk management practices, accounting for (i) the organization's level of risk, complexity and size and (ii) the type of third-party relationship;