Proposed Third-Party Risk Management Guidance

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-17T01:25:13.755Z • Permanent link

Regulatory bodies around the globe are abuzz with the latest development in the realm of third-party risk management. The proposed guidance, published in the Federal Register, promises to shake the foundations of the industry. Led by the Office of the Comptroller of the Currency (OCC), this initiative aims to provide a comprehensive framework for identifying and mitigating the risks associated with third-party vendors.

Key players in this space, such as the Financial Industry Regulatory Authority (FINRA), have been closely following the progress of this guidance. Industry insiders point to the OCC's efforts as a significant step forward, given the growing complexity of the global financial landscape. The guidance is expected to cover a wide range of topics, including vendor selection, contract negotiation, and ongoing monitoring.

One individual who has been vocal about the need for such guidance is Sarah Chapman, Senior Vice President of Risk Management at JPMorgan Chase. In an interview with our network, Chapman emphasized the importance of having a standardized approach to third-party risk management. "We're seeing a significant increase in the number of vendors we're working with, and it's becoming increasingly difficult to ensure that we're managing those risks effectively," she noted. The proposed guidance is expected to address some of these concerns, providing a much-needed clarity for institutions like JPMorgan Chase.

The proposed third-party risk management guidance has significant implications for the financial services sector. Companies such as Bank of America, Citigroup, and Wells Fargo, which have already begun implementing their own third-party risk management programs, are likely to benefit from the clarity provided by the guidance. However, smaller institutions and fintechs may struggle to adapt to the new standards, potentially putting them at a disadvantage.

Research communities and academia have also been following the development of this guidance closely. The OCC's efforts are seen as a response to the growing recognition of the importance of third-party risk management in the financial sector. The guidance is expected to inform research on topics such as vendor risk assessment and mitigation strategies, which has been a topic of increasing interest in recent years. The impact of the guidance on the academic community will be significant, as researchers seek to understand the implications of the new standards for their own work.

The proposed third-party risk management guidance is not an isolated development, but rather part of a larger trend in the financial sector. The rise of cloud computing, for example, has led to a significant increase in the number of vendors that financial institutions need to work with. This has created new challenges for institutions, which must now navigate complex vendor contracts and ensure that they are managing the associated risks effectively. The guidance is also part of a broader effort to improve the overall resilience of the financial system, which has been the subject of increasing scrutiny in recent years.