The Financial Stability Board (FSB), the international body responsible for the monitoring of the global financial system, has published a report on enhancing third-party risk management and oversight. The report serves as a toolkit for financial institutions to assist in their dealings with third party IT providers.
Considerations for financial institutions outlined in the FSB report, include the identification of critical services by financial institutions. The report suggests that these relationships with third party IT providers should be continuously monitored and mapped to enable understanding of the entire landscape of third-party interactions.
The toolkit outlined for financial institutions to assist in their dealings with third party providers includes the compilation of information on each service provider’s business continuity planning in the event of a system failure and independent incident reporting and root cause analysis of the impact of third party performance on the IT systems of the financial institution.
Full report available here.