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 recently issued proposed guidance for banking organizations on managing risks associated with third-party relationships, including those with financial technology-focused entities. Regulators have made clear that if banks have ineffective risk management processes, examiners will closely scrutinize their third party risk management and identify and report deficiencies in examination reports and recommend appropriate supervisory actions.

Join us as we discuss:

• Types of third-party relationships to which the proposed guidance applies, including bank/Fintech sponsorship arrangements
• Phases of the “third-party relationship life cycle” and how they impact risk management
• Key principles for risk management outlined in the proposed guidance
• Best practices for implementing an effective risk management process
• Additional considerations for bank-fintech sponsorship programs
• Update on CFPB supervision of service providers to supervised entities

Friday, August 6, 2021 | 12:00 - 1:00 PM ET