Home > Third Release 2024 > Community Banking Connections Promo: Supplemental Interagency Guide for Community Banks on Third-Party Risk

Community Banking Connections Promo: Supplemental Interagency Guide for Community Banks on Third-Party Risk

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks. To assist community banks in developing and implementing their third-party risk management practices, the Federal Reserve, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, recently issued “Third-Party Risk Management: A Guide for Community Banks,” which is available at www.federalreserve.gov/publications/files/third-party-risk-management-guide-20240503.pdf.

The guide is a resource for community banks when managing the risk of third-party relationships and provides potential considerations, resources, and examples. It covers the following:

  • Risk Management: Discusses risk considerations
  • Third-Party Relationship Life Cycle: Explains the five stages of the life cycle
  • Governance: Provides considerations for a bank’s governance over third-party relationships
  • Appendix: Offers additional resources

The guide does not:

  • act as a substitute for the 2023 Interagency Guidance on Third-Party Relationships: Risk Management;
  • prescribe specific risk management practices;
  • establish any safe harbors for compliance with laws or regulations; or
  • have the force and effect of law.

The following resources have additional information about managing third-party risk:

System Outreach

The Federal Reserve System provides various resources for training, services, and more.

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Policy and Guidance

Connect to various Federal Reserve resources, including SR and CA Letters, regulations, request for comment on rulemaking proposals, the latest Federal Reserve System speeches, and more.

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Community Banking Connections is a quarterly Federal Reserve System publication available electronically or in print.

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