Original Source: Federal Reserve

“During recent years, the Federal Reserve has increasingly emphasized the importance of sound risk management processes and strong internal controls when evaluating the activities of the institutions it supervises. This greater emphasis reflects the view that properly managing risks has always been critical to the conduct of safe and sound banking activities and has become even more important as new technologies, product innovation, and the size and speed of financial transactions have changed the nature of banking markets. Accordingly, while an institution’s financial performance is an important indicator of the adequacy of management, it is essential that examiners give significant weight to the quality of risk management practices and internal controls when evaluating the management and overall financial condition of banking organizations…”

Contributors: Federal Reserve Board
Categories: SIG U Resource, Whitepaper
SRC Type: Risk Management, Sourcing Management, Third Party Management