The Federal Reserve, OCC, FDIC and NCUA on Friday proposed guidance to help banks and credit unions "better align and tailor their third-party risk management practices to the risk of individual third‑party relationships." Fed staff said the proposal responds to rising outsourcing as banks rely more on third parties to boost efficiency and cut costs. The guidance is non-binding, principle-based and open for public comment. Fed Governor BARR dissented, citing concerns about the clarity of the sta

The Federal Reserve, OCC, FDIC and NCUA on Friday proposed guidance to help banks and credit unions "better align and tailor their third-party risk management practices to the risk of individual third‑party relationships." Fed staff said the proposal responds to rising outsourcing as banks rely more on third parties to boost efficiency and cut costs. The guidance is non-binding, principle-based and open for public comment. Fed Governor BARR dissented, citing concerns about the clarity of the standard for "material financial risk."