Federal Reserve Bank of Atlanta’s Post

While banks can benefit from services provided by third-parties, the importance of conducting due diligence prior to entering these partnerships can reduce risk making it a win-win for both parties.

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. This guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: ▶️ Risk Management: Discusses risk considerations ▶️ Third-Party Relationship Life Cycle: Explains the five stages of the life cycle ▶️ Governance: Provides considerations for a bank’s governance over third-party relationships ▶️ Appendix: Provides references to additional resources and guidance Read the full article here: https://bit.ly/3WfYhdh #FederalReserve #RiskManagement #ThirdPartyRisk #CommunityBanks

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. This guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: ▶️ Risk Management: Discusses risk considerations ▶️ Third-Party Relationship Life Cycle: Explains the five stages of the life cycle ▶️ Governance: Provides considerations for a bank’s governance over third-party relationships ▶️ Appendix: Provides references to additional resources and guidance Read the full article here: https://bit.ly/3WfYhdh #FederalReserve #RiskManagement #ThirdPartyRisk #CommunityBanks

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. The guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: • Risk Management: Discusses risk considerations • Third-Party Relationship Life Cycle: Explains the five stages of the life cycle • Governance: Provides considerations for a bank’s governance over third-party relationships • Appendix: Provides references to additional resources and guidance https://bit.ly/3LkkFMm #riskmanagement #thirdpartyrisk #federalreserve #communitybanks

Released on May 3, 2024 by US Federal bank regulatory agencies (Board of Governors of the Federal Reserve, #FDIC and #OCC) this guide aims to support community banks in managing risks presented by third-party relationships. Community banks engage with third parties to help compete in and respond to an evolving financial services landscape. Third-party relationships present varied risks that community banks are expected to appropriately identify, assess, monitor, and control to ensure that their activities are performed in a safe and sound manner and in compliance with applicable laws and regulations. These laws and regulations include, but are not limited to, those designed to protect consumers and those addressing financial crimes. The guide offers potential considerations, resources, and examples through each stage of the third-party relationship and may be a helpful resource for community banks. While the guide illustrates the principles discussed in the third-party risk management guidance issued by the agencies in June 2023, it is not a substitute for that guidance. #TPRM #riskmanagement #thirdpartyrisk #outsourcing #risk #riskassessment #GRC #Fed #guidance #policies #procedures #bestpractices #communitybanks #financialservices #riskassessment #technologyrisk

🛡️⚠️New article alert: Community Banks and BaaS: New Guidance on Managing Risks Regulators have just released new guidance, packed with crucial insights that every community bank should pay attention to. Whether you're knee-deep in BaaS or just dipping your toes, this article will walk you through what you need to know about managing the risks involved. The article delves into the practical aspects of BaaS relationships, discussing the benefits and risks. It also outlines key next steps for Risk Managers in community banks, equipping you with the tools for effective risk management. Read the full article: https://hubs.li/Q02y_ZMT0 #BatesGroup #CommunityBanking #BaaS #RiskManagement #TPRM #FinancialServices

🛡️⚠️New article alert: Community Banks and BaaS: New Guidance on Managing Risks Regulators have just released new guidance, packed with crucial insights that every community bank should pay attention to. Whether you're knee-deep in BaaS or just dipping your toes, this article will walk you through what you need to know about managing the risks involved. The article delves into the practical aspects of BaaS relationships, discussing the benefits and risks. It also outlines key next steps for Risk Managers in community banks, equipping you with the tools for effective risk management. Read the full article: https://hubs.li/Q02z0dMn0 #BatesGroup #CommunityBanking #BaaS #RiskManagement #TPRM #FinancialServices

1st Dear CEO letter for the year from PRA clearly identifies key areas of focus of UK banks: Credit Risk Financial Resilience Operational Resilience Model Risk Data Risk Financial Risk arising from Climate Change Resolution and Recovery #bankingindustry #riskmanagement #riskgovernance #modelriskmanagement #datarisk #operationalresilience #operationalrisk

As the green transition gathers momentum, the economy needs stable banks, says Supervisory Board Vice-Chair Frank Elderson in our latest blog post. It is therefore crucial for banks to identify, measure and manage risks arising from the transition to a net-zero economy, just as they would for any other risk. This should become standard risk management practice for banks, especially as it is only a matter of time before transition plans become mandatory. Read the latest Supervision Blog post https://lnkd.in/eVQeBXmT

🛡️⚠️New article alert: Community Banks and BaaS: New Guidance on Managing Risks Regulators have just released new guidance, packed with crucial insights that every community bank should pay attention to. Whether you're knee-deep in BaaS or just dipping your toes, this article will walk you through what you need to know about managing the risks involved. The article delves into the practical aspects of BaaS relationships, discussing the benefits and risks. It also outlines key next steps for Risk Managers in community banks, equipping you with the tools for effective risk management. Read the full article: https://hubs.li/Q02z0dC50 #BatesGroup #CommunityBanking #BaaS #RiskManagement #TPRM #FinancialServices