The FDIC has not established performance goals and metrics to measure the effectiveness of its program to assess the risk management practices of third-party firms that provide services to banks, according to a recent report by the FDIC Office of Inspector General.
The OIG evaluated the FDIC’s Significant Service Provider Examination Program and concluded that while the agency has taken steps to establish goals and metrics for it, “they were not measurable or directly linked to program success factors.”
“As a result, we were unable to conclude on the program’s effectiveness in evaluating the risk exposure and risk management performance of SSPs and determining the degree of supervisory attention needed to ensure weaknesses are addressed and risks are properly managed,” the OIG said.
The OIG recommended that the FDIC complete efforts to develop and implement program-level goals and metrics for both the regional and significant SPP examination programs. The FDIC concurred with the recommendation and plans to complete corrective actions by March 31, 2026.
