Risk Management in Third-Party Relationships: What Banks and Service Providers Need to Know

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

CLE Credits: This program is approved for 1.0 CLE credit in CA, NJ, & NY. Uniform Certificates of Attendance will also be provided for the purpose of seeking credit in other jurisdictions. Please note: CLE credit in the following states will not be available: NV and PA.

Please register at least two days before the webinar(s). Login details will be sent to all approved registrants. For more information, contact questions@ballardspahr.com.