Third Party Risk

This issue's key takeaways: Banks in the US and EU have clear expectations and guidelines for managing third-party risk: the Interagency Guidance on Third-Party Relationships and the Digital Operational Resiliency Act (DORA).These regulations expect banking organizations to perform diligent financial oversight and analysis of third-party partnerships.Banks must manage third-party financial conditions throughout the entire relationship lifecycle to maintain regulatory good standing and avoid financial danger. Comprehensive assessment and analysis tools are key to proactively mitigating risk.

At RapidRatings, we work with thousands of Supply Chain and Third-Party Risk professionals who wrestle with impending tariffs.

The downfall of Exela Technologies, a SaaS vendor, has been on our radar for quite some time.

Financial institutions rely heavily on third-party partners, from financial management to day-to-day operations. When a third-party provider fails, the entire organization can be compromised. To safeguard operations, financial institutions need to proactively monitor the financial health of their third-party partners, especially private ones, at least twice a year.