Risk
04/02/2014

The Sword of Damocles: Best Practices for Managing Vendor Risk

Like the ancient courtier Damocles who had a sword dangled over his head, banks are in a precarious position. Regulators can and do fine banks who fail to manage the risk posed by third party vendors. This article is a guide for boards wanting to implement a successful vendor management program. Background The economics underlying modern banking necessitate that certain operational functions be outsourced to non-bank entities. The prudential regulators recognize the benefits and efficiencies provided by third-party vendors—reduced costs, new product offerings and enhanced performance—but they also bemoan the inherent problems. To combat the risks caused by outsourcing, regulators…

You have accessed a resource that is only available to our Bank Services members.

From how-to articles, director training videos, key interviews with industry leaders and more, Bank Services provides bank executives and directors with the tools to help grow their financial institutions. To sign up for exclusive access to this online bank board resource, please contact Bank Services at 615-777-8461 or [email protected].

Read The Article

Please enter your username and password below. If you have established a password please click ‘forgot your password’

Reed White