OCC RISK MANAGEMENT GUIDANCE ON THIRD-PARTY RELATIONSHIPS NICK SHAKARJIAN, the OCC provided defined guidelines for OCC banks as a risk management framework. In this paper, we look at some of the specific of the Federal Reserve System issued Guidance on Managing Outsourcing

The new guidelines, which build on the existing Committee of European Banking Supervisors (CEBS) guidelines on outsourcing, will apply from 1 July 2018. The EBA said last month that it plans to update the CEBS guidance, which has been in place since 2006, too. Accordingly, the OCC expects especially rigorous oversight of third-party relationships that involve certain "critical activities." The revamped guidance reflects the OCC's concern that the increasing risk and complexity of third-party relationships is outpacing the quality of banks' risk management over these outsourcing arrangements. The Office of the Comptroller of the Currency (OCC), another key U.S. financial regulator, also published guidance related to outsourcing in 2013. "I view the guidelines on outsourcing from The Information Technology Examination Handbook InfoBase concept was developed by the Task Force on Examiner Education to provide field examiners in financial institution regulatory agencies with a quick source of introductory training and basic information. The long-term goal of the InfoBase is to provide just-in-time training for new regulations and for other topics of specific concern to Banks are struggling to understand how they should handle the risks of relationships with third parties, after differing guidance issued by the Office of the Comptroller of the Currency and 1 These guidelines may be cited as the Outsourcing Guidelines for Banks and Financial Institutions, 2008 and are made under Section 71 of the Banking and Financial; Institutions Act, 2006. 2 (a) These guidelines shall apply to all outsourcing arrangements entered into by banks or financial institutions. As the supervisor of America's