A&M Supply Chain Viewpoint: Future-Proofing Third-Party Risk Management

The Imperative of Today's Actions for Tomorrow's Security

In an evolving regulatory landscape, financial institutions face a critical challenge: ensuring their third-party risk management programs not only comply with the new final joint guidance issued by the FRB, FDIC and OCC but also set a standard for proactive risk management. With historical approaches varying in prescriptiveness, the necessity to "level up" has never been more urgent. The fundamental question is whether current programs meet these rigorous standards and, if not, how institutions can rapidly adapt.

Previously, regulatory bodies provided diverse frameworks for managing third-party risks by creating a patchwork of compliance strategies among financial institutions. This varied prescriptiveness led to inconsistencies in risk management approaches.