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Blog  |  September 15, 2023

Termination & the New Guidance: Tips & Tools

In our last post, we reviewed the new interagency guidance expectations for terminating a third-party relationship.  Let’s look now at tools and best practices to support alignment with the new guidance. 

 When terminating third-party relationships, banking organizations should consider the following tools and best practices: 

  • Standardize third-party offboarding processes, 
  • Create a termination checklist that includes items specific to each third-party type, such as type of services provided or business units impacted, 
  • Create transition service plans that detail how services are to be transitioned, costs associated with transition services, and business continuity protections, 
  • Digitize these checklists and plans, using AI and other tools to automate checklists, workflows, and alerts, 
  • Use digital tools to monitor offboarding and to automatically update stakeholders, 
  • Use technology to ensure all relevant data is migrated to the new third party or in-house, including testing and validation procedures, and 
  • Use digital tools to track ownership of IP and to automate document required notices of return/destruction of confidential information. 

 Join us next week as we continue our Market Insight series, where we will discuss supervisory reviews under the new guidance.    

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