The Consumer Financial Protection Bureau and prudential banking regulators approach vendor management from different perspectives, but end up in much the same place: Financial institutions that engage third parties to perform services are not relieved of responsibility for how those services are carried out.
Please click below to read a Sightlines InFocus by Julie Williams and P-R Stark that discusses how financial companies are reassessing their vendor oversight from both prudential and consumer-protection perspectives. Common steps include re-evaluating activities appropriate for outsourcing, developing a more rigorous process for selecting third-party vendors, establishing stronger procedures to monitor vendor performance, and reconsidering the corporate function best suited for these responsibilities.
