Third-Party Relationships: Risk Management: What All Banking Organizations Need to Know

The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors, and the Office of the Comptroller of the Currency (OCC) collaborated to establish a unified approach to managing and monitoring the risks associated with third-party relationships banking organizations.

This interagency guidance was approved on June 6, 2023, and all federally regulated banking organizations are expected to establish and maintain risk management on all third-party relationships including third-party service providers, third-party payment processors, and FinTech’s. This session will provide the third-party risk management life cycle and what you need to know before your next examination.

• Why is effective risk management important? 
• What regulations, guidance, rules, and laws affect the need for risk management?
• How to implement an effective risk management program. 
• How to identify risks in transaction monitoring and what should be done after risks are identified. 
• Get updated on the most recent regulations and compliance relating to payments and BSA/AML risk management. 
• What is a third-party relationship and how does it affect a financial institution?
• How does a relationship with a financial institution look like for a third party? 

• Risk management.
• Deposit operations.
• BSA/AML monitoring and compliance.
• Financial Regulation and Compliance.
• Treasury Management.
• Due diligence – onboarding and periodic risk reviews.
• Audit.

• Understanding the regulators' interagency guidance on third-party relationships and risk management effective June 6, 2023.
• Risk Management program's effectiveness according to the risk management life cycle.
• Learn how to stay away from potential Consent Orders from the regulator(s) that have been occurring since the summer of 2023.

• VP (and up), Deposit Operations.
• Back Office Operations Payment Services.
• Risk Officer (CRO, ERM).
• Compliance Officer.
• COO.
• Treasury Management.
• Audit (Internal audit).
• Any AAP or APRP accreditation. 
• Commercial Loan Officer – Communicating directly with non-consumer customers using Treasury Management Services.
• Payment Services – (Customer facing and back office).

Nanci McKenzie is an experienced speaker and a recognized expert in the field of payment technology. She currently is an independent consultant. With over 38 years of experience in the payment technology industry, Nanci has a wealth of knowledge and expertise in payment processing, fraud prevention, and risk management.

Prior to consulting opportunities, Nanci was with Affirmative Technologies. Nanci held senior leadership positions at financial institutions and payment technology companies, where she oversaw product development, strategic planning, and deposit operations. Her experience has provided her with a deep understanding of the payment technology landscape and the challenges that financial institutions face in this rapidly evolving industry.

Nanci holds a B.S. in Business and Information Management from Seminole State College and a Juris Master's degree in Financial Regulation & Compliance from Florida State University College of Law. She is currently working toward her Master of Legal Studies from Thomas R. Kline College of Law at Drexel University in two concentrations, Financial Regulatory Compliance and Cybersecurity and Data Privacy. She is also an Accredited ACH Professional (AAP) and an Accredited Payments Risk Professional (APRP).