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.
When most bankers and credit union executives think of concentration risk, they think of lending—but concentration risk has a different meaning when talking about third-party vendor management. Regulators are looking at two main concerns: Over-reliance on a single vendor & geographic concentration.
Compliance risk is the danger financial institutions face when they outsource product and service delivery to third-party vendors. It’s not a rare occurrence. FIs are regularly called out by regulators when their vendors fail to follow the rules.
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 […]
Mike Lawson of CUBroadcast interviews Ncontracts CEO, Michael Berman, and discusses mergers and acquisitions for credit unions.
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.
America’s armed forces protect our country—and the financial services industry is supposed to do the same for servicemembers, following laws and regulations to minimize financial worries while they’re busy serving their country. That includes financial institutions’ third-party vendors, as a recent speech by Grovetta Gardineer, the OCC’s senior deputy controller for compliance and community affairs, […]
It’s not every day a vendor sues its customer—especially when that customer is a credit union. But that’s exactly what JMFA is doing in a $460,350 lawsuit against a $91 million California credit union. The reason: The credit union was allegedly “secretly and illegally” using JMFA’s overdraft protection product, according to an article by Peter […]
What do the Bangladesh central bank and your third-party vendors have in common? They need to be taking steps to protect themselves and customers from cyber attacks. The threats are real. Earlier this year hackers stole $81 million from Bangladesh’s Federal Reserve Bank of New York account via the Swift international fund-transfer network—with aims of […]
In 2015, we wrote about best practices in vendor management, new regulatory mandates, and increasing cyber-ransom attacks on financial institutions. As 2016 kicks into gear, it’s apparent more sophisticated vendor risk management procedures are a must-have. Here are a few key reasons: The FFIEC holds your entire organization and Board responsible for third-party IT provider cybersecurity […]