Insights and Publications

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:

  1. Overview of the increasing regulatory expectations in third-party vendor management
  2. Discussion on the various types of vendor relationships and how their risk levels vary
  3. Best practices for effective vendor risk management
  4. Future industry implications based upon the current regulatory environment

Download the full conference presentation to learn more about third-party vendor management best practices.