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 […]
In offices and on conference calls across America, salespeople are plotting to baffle financial institutions with an acronym created not by regulators, but by marketing personnel. It’s not hard. Compliance and risk management are already mysterious—up there with Big Foot, the Loch Ness monster, the origin of Stonehenge and whether or not your cat actually […]
Just because a bank outsources an activity doesn’t mean it can outsource responsibility. The FDIC’s most recent regulatory guidance on vendor management has three significant takeaways for community banks: Contract risk management Vendor management and cybersecurity Disaster recovery and business continuity planning This white paper takes a deep dive into these three areas and the impact they have on your […]