How Can Banks Leverage External Risk Monitoring to Comply with the Interagency Guidance on Third-Party Relationships?

External risk monitoring can help banks stay ahead of third-party risks while meeting the set expectations of interagency guidance. This whitepaper explains how.

In this whitepaper, we discuss:

• Why static, point-in-time reviews are no longer sufficient for managing third-party risk under the interagency guidance.
• How external risk monitoring strengthens risk-based due diligence, including when traditional documentation is incomplete.
• The role of continuous monitoring in detecting emerging risks, from adverse media and sanctions exposure to consumer complaints and cyber incidents.
• Why audit-ready documentation and reporting are essential for regulatory examinations, and how external data supports both.