United States

OCC examination procedures address risk of third-party relationships


The Office of the Comptroller of the Currency (OCC) issued supplemental examination procedures to promote consistency in the examination of banks’ risk management of third-party relationships. According to OCC Bulletin 2017-7, the procedures are designed to help examiners:

  • Tailor the examination of each bank to the level of risk and complexity of the bank’s third-party relationships
  • Assess the quantity of the bank’s risk associated with its third-party relationships
  • Assess the quality of the bank’s risk management of third-party relationships involving critical activities
  • Determine if there is an effective risk management process throughout the life cycle of the third-party relationship

These examination procedures are in part derived from the risk management guidance published by the OCC in October 2013. More specifically, these procedures include the descriptions of risks associated with third-party relationships contained within OCC Bulletin 2013-29.