Managing the Third Party Relationship

Banks often rely upon third parties to perform a wide variety of services and other activities.  Recent federal guidance from prudential regulators clarifies that a bank’s board of directors and senior management are ultimately responsible for managing activities conducted through third party relationships, including identifying and controlling the risks arising from such relationships, to the extent as if the activities were handled within the bank.  This program outlines the bank’s third party relationship management responsibilities and discusses the board’s specific role, which includes oversight and accountability of the bank’s risk management process.

Covered Topics

  • Identifying Significant/Critical Relationships
  • Bank Responsibility – Risk Management Process
  • Third Party Relationship Risks
  • Risk Assessment
  • Due Diligence
  • Contract Structure and Negotiation
  • Ongoing Monitoring
  • Board Responsibility –  Oversight and Accountability
  • Supervisory Reviews/Examinations
  • Penalties

Who Should Attend?

Anyone in the institution having compliance responsibilities - when you think about this, it could be just about anyone in the institution. This may include members of senior management, operations personnel, lending personnel, underwriters, customer service representatives, back-room personnel, and of course compliance officers, auditors, and attorneys, and anyone else in the institution that might benefit from this valuable information.

The biggest value of the series..."Ability to have someone explain in plain English what is going on." Christine G., Bank Fund Staff Federal Credit Union