The new third-party oversight framework: Trust but verify

Financial services regulatory focus on third-party risk management in the United States as well as in other jurisdictions has increased as firms continue to expand the number and complexity of relationships with both foreign and domestic third parties. Recent releases from the U.S. Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (Federal Reserve) focus on enhanced bank and bank holding company examination guidance in this area, and reflect the evolution in regulatory thinking about how firms must manage the third-party oversight (TPO) process.