Staying Strategic with Third Party Risk, InformationWeek Bank Systems and Technology
Feb 19, 2015, By Sean Cronin, InformationWeek Bank Systems and Technology
Banks have an opportunity to not only specify and assess controls, but also inspire a strategic and robust approach to risk management.
Over the past year, the OCC, the FRB, and the FDIC have all released updated guidance on managing third-party risk. One focus of this guidance is the identification of critical vendors and board-level approval, which highlights the importance of understanding how third parties expose the banks they serve to privacy concerns and operational risk. The question isn’t, what happens to the third party if there’s an incident Rather, its, What happens to the bank(s) served if there’s an incident at the third party? The importance of this distinction is obvious, but too often overlooked by those tasked with managing third-party risk…