The FDIC’s most recent regulatory guidance on vendor management has three significant takeaways for community banks. We have developed this whitepaper to help banks understand the guidance and apply the lessons throughout their vendor management processes.
It’s bad enough to be hit with a regulatory consent order. Now imagine the expense and public relations nightmare when those proceedings drag on for years. Just ask Fidelity National’s subsidiary ServiceLink. This week the Fed, FDIC and OCC fined the company $65 million for improper actions taken by its predecessor company, Lender Processing Services, […]
Well-capitalized, well-managed banks with less than $1 billion in assets must have been on the regulators “nice” list last year. The federal banking agencies, including the FDIC, the Fed and the OCC, have finalized rules permanently extending the exam cycle from 12 to 18 months. It’s a huge sigh of relief for these banks, but they shouldn’t […]
Bankers and credit union executives are always eager to find out what bank examiners want. It’s like there’s an answer key out there and if they ask around enough someone will hand them a copy. But regulatory exams aren’t multiple choice. They are (almost literally) essay questions, and regulators expect different answers from different institutions. […]
Perhaps there’s no buzz word more confusing to bankers and credit union executives than the “cloud.” It evokes an ethereal image of data floating safely and serenely overhead, able to materialize on screen with the press of a button. But the cloud is a place on earth. Actually, many places on earth.
Vendor risk management is an ongoing process—one that begins with due diligence before a contract is signed and continues with monitoring throughout the length of the relationship. This blog series on the Top 10 risks will help you more effectively address how third-party vendor risk throughout every department in your financial institution. #3 Cybersecurity Risk In […]
If you think it’s tricky to keep track of the rules and regulations of your regulatory agency, imagine having to follow the legal, regulatory and operational requirements of foreign countries.
That’s exactly what needs to happen if a vendor is conducting any segment of your business in another country. Country risk is “an exposure to economic, social, and political conditions in a foreign country that could adversely affect a vendor’s ability to meet its service level requirements,” according to the FFIEC’s Appendix C: Foreign-Based Third-Party Service Providers.
Ben Franklin once wrote that “Glass, china and reputation are easily cracked, and never well mended.” Reputational risk is present any time a vendor enters the picture, so it makes sense to spend the necessary time and resources to choose only those vendors who have proven to be trusted and valuable partners.
Credit risk is the strength and ability of a company to manage debt and stay in business to ensure continued operations. Credit risk is a real concern. A financial institution that partners with a financially unsound vendor may find itself suddenly cut off from a critical product or service if that firm goes under—drawing the wrath of regulators and customers. Join us as we explore credit risk, one of the Top 10 Risks Third-party Vendors Pose to Financial Institutions.
Remember when you were in college and had to decide if you’d do the recommended reading for a class? It wasn’t exactly mandatory, but you never knew if that material would show up on a test. You were taking a risk if you chose to ignore it. Financial institutions run the same risk today if […]