​Fed governor teases new TPRM guidance for banks

The Federal Reserve and other U.S. banking agencies are working to develop joint guidance to clarify regulatory expectations around third-party risk management (TPRM), according to Fed Governor Michelle Bowman.

Bowman made the remark in a speech at an Independent Community Bankers of America conference Tuesday. She said the potential guidance would “be an important step in supporting innovation built on third-party partnerships.”

“Third-party partnerships designed to bring innovation into a bank can also create risk management and due diligence challenges, particularly with respect to identifying the risks that a third-party partner may pose and to managing these risks,” she said.