US Bank Regulators Release Final Guidelines for Third-Party Risk Management

Federal bank regulatory agencies have issued final joint guidance to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies. The guidance covers risk management practices for the stages in the life cycle of third-party relationships and includes illustrative examples to help community banks align their risk management practices with the nature and risk profile of their third-party relationships. The final guidance replaces each agency's existing general third-party guidance and promotes consistency in the agencies' supervisory approaches toward third-party risk management.