Agencies Release Third-Party Risk Management Guide for Community Banks
The Federal Reserve, FDIC, and OCC released a third-party risk management guide for community banks.
To assist community banks in managing third-party risks, the guide addresses potential considerations, sources of information, and detailed examples on the following topics related to the lifecycle of third-party relationships:
- Planning;
- Due diligence and selection;
- Contract negotiation;
- Ongoing monitoring;
- Termination; and
- Governance.
The appendix also offers a list of government resources that community banks can review regarding their management of third parties.
The guide notes that it is intended to be illustrative, and is not a substitution for more comprehensive third-party risk management guidance issued by the agencies in June 2023 (previously discussed here).
