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Proposed Third-Party Risk Management Guide for Traditional Community Banking Organizations
Plain English Summary
The Board is seeking feedback on a new guide aimed at traditional community banks to help them manage risks from their relationships with outside vendors. This guide is based on the Board's experiences and insights gained from reviewing how these banks handle third-party risks. It will highlight the main risks these banks face when working with third parties and will focus on specific types of third-party relationships that are common in community banking. Insurance agents should review this proposed guide and consider how it may impact their relationships with vendors and service providers.
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The Board invites comment on a proposed guide for traditional community banking organizations on managing risks associated with third-party relationships. The proposed guide would reflect the Board's supervisory experience and lessons learned through examining community banking organizations' third-party risk management practices. In particular, the proposed guide would discuss the key risks faced by traditional community banking organizations in their third-party relationships in general and in relation to particular categories of third-party relationships most common to traditional community banking organizations.