The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are issuing an interagency paper on Sound Practices to Strengthen Operational Resilience.
Key takeaways re: third party management
- Identify and analyze third-party risk of critical operations and core business lines.
- Prioritize third-party dependencies that are most significant.
- Establish relationships with third parties through formal agreements.
- Establish processes and benchmarks for monitoring third parties.
- Verify that third parties have sound risk management practices and controls in place.
- Identify risks of third parties that provide public and critical infrastructure services, such as energy and telecommunications, and develop processes to manage disruptions of these services.