Third-party risk management is rightfully a key priority for banking regulators like the Office of the Comptroller of the Currency (“OCC”). It should be considered as a material operational risk alongside business continuity, cybersecurity, and more. Some banks use thousands of vendors, including affiliates, to operate their businesses and deliver the solutions and convenience that the market demands. Every one of the many thousands of service providers a bank may use exposes them to different levels of risk - some of which can be serious and costly. This is why banking regulators are requiring strong, risk-based due diligence and ongoing monitoring before and after a third party is hired.
