Third-Party Vendors in the Regulatory World
March 24, 2015
At CBA LIVE Bridgeforce presented to an audience of banking executives on managing third-party vendors in the new regulatory world. For financial services, the regulatory and operational risk expectations continue to rise with regards to the use of third-party vendors.
The expectation is that first parties – such as a bank, credit union, or non-bank lender – will be held accountable for the actions of the third-parties they contract with. This topic applies across all vendors a first party may engage with, however, the presentation at CBA LIVE was focused primarily on default management (collections and recovery), although the themes are easily ported to non-default related vendors.
The expectation of “customer experience” and “compliance” exists between the customer and institution and shouldn’t be reduced or altered in a negative way by using third-party vendors. When designing a process, we recommend integrating specialized vendor control needs closely with existing corporate programs, including corporate vendor management groups.
This presentation covers the following topics:
- Overview of the increasing regulatory expectations in third-party vendor management
- Discussion on the various types of vendor relationships and how their risk levels vary
- Best practices for effective vendor risk management
- Future industry implications based upon the current regulatory environment
Download the full conference presentation to learn more about third-party vendor management best practices.