Interagency Guidance on Third-Party Relationships: Risk Management / FIL-29-2023

On June 6, 2023, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) issued final guidance on managing risks associated with third-party relationships. The guidance provides principles that support a risk-based approach to third-party risk management for all stages in the life cycle of third-party relationships.

“Responsibilities to ensure that activities are performed in a safe and sound manner and in compliance with applicable laws and regulations, including but not limited to those designed to protect consumers (such as fair lending laws and prohibitions against unfair, deceptive or abusive acts or practices) and those addressing financial crimes.” (Page 1)

“Regardless of a banking organization’s approach, a key element is to ensure that the banking organization’s risk management processes for third-party relationships are commensurate with the level of risk and complexity of its third-party relationships.” (Page 7)