Original Source: Linda Tuck Chapman

Third Party Management isn’t new, but its importance is growing in every industry and the financial services sector is leading the way. With an average of three years’ experience to learn from, risk oversight experts and practitioners are re-assessing their programs for opportunities to strengthen them.

In his address to the American Bankers Association, Thomas J. Curry, Comptroller of the Currency, OCC said “It is well that we are finally giving these [operational] functions the attention they deserve. It is also good that we are finally recognizing the individuals responsible for performing risk management and compliance.”

The effectiveness of third party management is a component of safety and soundness exams, and severe deficiencies can affect an institution’s CAMELS rating (Capital, Assets, Management, Equity, Liquidity). This intense regulatory focus on effective lifecycle management and governance practices means that third party management is on the agenda the Board of Directors, Audit and Risk Committees, C-suite executives, business line and corporate function leaders. 

Contributors: Linda Tuck Chapman
Categories: SIG U Resource, Whitepaper
SRC Type: Risk Management, Sourcing Management, Third Party Management