As noted earlier, the guidance includes a laundry list of expectations for the third-party contracts of banking organizations. To ensure their contracts align, banking organizations must act now to:
- Identify key contract clauses outlined in the guidance to establish the extent to which the existing contracts contain the required provisions.
- Remediate/renegotiate all contracts found to contain gaps.
- Update contract templates to remediate any gaps.
The guidance impacts all banking organizations and adds to the growing list of compliance requirements they must manage. The costs of compliance continue to rise:
- 60% increase in compliance spend 2008. 
- $270 billion spent annually on compliance. 
- 10% or more of the total bank operating costs are spent on compliance. 
Given the rising costs, banking organizations can no longer rely on traditional manual reviews to assess and remediate contract gaps. They must turn to technology to achieve compliance and help control their compliance spend. Technology can help:
- Expedite contract review.
- Assess large volumes of contracts.
- Enable review across multiple repositories.
- Ensure ongoing compliance with net new contracts.
Regardless of size, all banking organizations must undertake this assessment and do so sooner rather than later.
In our next post, we will examine the expectations for ongoing monitoring of third-party risks.