Due Diligence: Financial Regulators Seek Feedback on Managing Third Party Relationships

Proposed guidance requires financial companies to conduct in-depth due diligence, periodically update risk assessments throughout the third party relationship, monitor third-party disaster recovery and business continuity timeframes for resuming activities and recovering data following a business disruption, ensure consistency with internal controls and risk appetite, assess the third party’s ability to monitor and control risk, and benchmark the third-party’s performance against contracts.