Getting Started With Third-Party Risk Management: Two Key Questions

Banks often outsource a variety of essential services to third-party vendors. In light of increased regulatory attention and third-party involvement in day-to-daybusiness operations, many bank boards and senior management teams areconsidering their approach to developing a third-party risk management program. A thoughtful approach based on an initial assessment of the bank’s current state can result in better risk management and compliance that aren’t overly burdensome. Addressing two important questions will help begin the process of successfully launching a third-party risk management program that is both compliant and effective.