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. #9 – Operational Risk […]
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.
Not every third-party vendor requires the same level of scrutiny, the Consumer Financial Protection Bureau made clear in its October 31 guidance update on risk management for third-party service providers. Supervised banks and non-banks have the “flexibility” to perform an inherent risk assessment on the third-party vendors to “allow appropriate risk management” of these relationships, […]
Empty threats are rarely a good idea—and sometimes they are straight-up illegal. That’s the lesson $73 billion-asset Navy Federal Credit Union is learning after the CFPB forced it to pay members $23 million in redress and a $5.5 civil money penalty for making “false threats about debt collection.” The largest credit union in the country […]
Either Wells Fargo didn’t have strong enough account opening and management policies and procedures in place or there wasn’t a strong enough system to ensure policies and procedures were followed—or both.