Tailored approach to risk management

Answered by:

Question:

Does my small community bank need to adopt the same third-party relationship risk management approaches as larger, more complex banking organizations?

Answer:

No, of course not. Although the Guidance is relevant to all banking organizations, not all third-party relationships present the same level or type of risk and therefore they do not all require the same level of oversight or risk management. Each banking organization is responsible for analyzing the risks associated with each third-party relationship and for calibrating its risk management processes so they are commensurate with the organization’s size, complexity, and risk profile and with the nature of its third-party relationships.

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Learn more about John Burnett’s, Managing the Risk of Third-Party Relationships webinar.