Date: July 12, 2023
Time:
1:00 AM - 2:00 AM CST
As banks increasingly rely on third parties to provide financial products and services to their customers, their exposure to risks also grows. The Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation have issued final interagency guidance for their respective supervised banking organizations on managing risks associated with third-party relationships, including relationships with financial technology-focused entities. The agencies have made clear that examiners will closely scrutinize banks’ third-party risk management processes, identify and report risks and deficiencies in examination reports, and recommend appropriate supervisory or enforcement actions against banks and third parties.
We will discuss:
Types of third-party relationships to which the final guidance applies, including bank/fintech arrangements
Phases of the “third-party relationship life cycle” and key factors outlined in the final guidance for banks to consider in each phase
What the agencies’ expectations are for bank management and boards of directors
What the agencies will look at in supervisory reviews
Best practices for implementing an effective risk management process
Original source can be found here.