Blog: Vendor Management

FDIC and NCUA Vendor Management Requirements

FFIEC-Logo.svg The NCUA and FDIC requirements for managing third party relationships (a.k.a. vendors) are fairly straight-forward. The problems with meeting compliance, and protecting an institution, arise when dealing with multiple vendors for critical services. Different financial reports, security audit reports, reputation factors, etc etc etc. The FDIC and NCUA both require that banks and credit unions to: • Evaluate the overall effectiveness of the third-party relationship and the consistency of the relationship with the financial institution’s strategic goals. • Review any licensing or registrations to ensure the third party can legally perform its services. • Evaluate the third party’s financial condition at least…

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