Third Party Vendor Risk Management

Guidelines recently introduced regarding third party vendor risk management and vetting have created a situation difficult for many community banks to manage. Insurance and financial services policies and programs, for most community banks, have been in place for many years- with little vendor update or program review.

Having an independent third party review non-deposit insurance and financial services programs provides several key benefits:

  • Establishes the basis for a third party vendor management compliance examination;
  • Provides key bank insurance policy, limits and coverage review;
  • Provides information regarding compliance issues.

Key non-deposit areas available for review:

  • Financial institution bond;
  • Directors and officers liability
  • Package P&C;
  • Cyber;
  • Force placed insurance including internal procedures;
  • BOLI;
  • 401(k);
  • Retail investment contract and programs;
  • Direct marketing insurance;
  • Loan related insurance programs;
  • Checking account and club programs.

A detailed management report is provided for senior management, board of directors as well as regulator information in a written as well as a focus group setting.

Contact Jim Sarosy at jjsarosy@CBAO.com or (614) 846-2170 for more information on third party risk management.