FDIC Announces Proposed Guidance on Risk Management Concerning Third-Party Relationships

The FDIC, Board and OCC released a proposed guidance today that aims to help banking organizations handle third-party relationships and stay compliant with laws and regulations, including those associated with consumer protections.  

Within the proposed guidance is a framework "based on sound risk management principles" that outlines many important considerations for banking organizations including "planning to manage the relationship and its risks, due diligence and third-party selection, contract negotiation, oversight and accountability, ongoing monitoring, and termination." 

The framework offered within the proposed guidance takes into consideration the following: 

• Level of Risk  

• Complexity 

• Size of the Banking Organization 

• Nature of the Third-Party Relationship 

If approved by the agencies, this proposed guidance will supersede the current FDIC's Guidance for Managing Third-Party Risk. 

 If you have any questions or concerns about risk management for your banking organization, please reach out to our firm via email or phone.