Cybercriminals are professionalizing and a new threat is on the rise.
Browsing: Third-party risk
The Financial Stability Board released a guide for financial institutions and regulators on enhancing third-party risk management and oversight.
Companies are reviewing the mix of metrics they use to track the risk of bank counterparties, taking a variety of actions to reduce harm should a relationship bank fail.
Federal regulators are seeing banks enter a growing number of third-party relationships to provide technology services, so it is important for those institutions to make sure their third-party risk management practices are sound to avoid potential supervisory problems down the road, representatives from four banking agencies said.
All banks should conduct a gap analysis to identify opportunities to strengthen their TPRM programs and align them with the new guidance.
Banks, third-party providers of all sizes and, most importantly, customers could benefit from a new oversight establishment for the rapidly evolving fintech marketplace.
As Treasury plans to take a number of steps to assist financial institutions in reducing risk from the operational disruption of cloud services, banks can do a lot on their own.
Legacy technology continues to hamper banks, but new middleware solutions can help banks onboard promising new technology without replacing their entire tech stacks.
As banks become increasingly reliant on third-party service providers, Federal Reserve Governor Michelle Bowman said bank regulators should “consider the appropriateness of shifting the regulatory burden from community banks to more efficiently focus directly on service providers.”