Inactive Financial Institution Letters
March 14, 2016
Technical Assistance Video on Outsourcing Technology Services
As part of the FDIC's Community Banking Initiative and Technical Assistance Video Program, the FDIC is announcing the release of a new video on outsourcing technology services. The video is designed to assist community bank directors and senior management in developing a comprehensive risk-assessment program for vendor management.
Statement of Applicability to Institutions with Total Assets under $1 billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.
- As financial institutions become more involved in technology outsourcing, they must manage the risks associated with reliance on third-party service providers. Outsourcing has become more complex, with many banks using vendors for key business functions and relying on multiple providers.
- The video on outsourcing technology services discusses the responsibilities of financial institutions' boards of directors and senior management in governing their institutions' vendor-management program.
- A vendor-management program represents the policies and procedures established to select and monitor third-party relationships.
- The video covers the main components of a vendor-management program, including the risk-assessment process, the service-provider selection program, contract negotiation and evaluation, and ongoing monitoring.
- The video also discusses business continuity planning and testing, and resources available to assist institutions in establishing and maintaining a sound vendor-management program.
- The video is available for viewing on the FDIC's website at https://www.fdic.gov/regulations/resources/director/virtual/vendor.html.
- Alternatively, FDIC-insured institutions may download the video through FDICconnect by contacting their FDICconnect coordinator.
- FDIC-Supervised Banks
- Chief Executive Officer
- Chief Information Officer
- Chief Technology Officer
- General Counsel
- FFIEC IT Examination Handbook, Outsourcing Technology Services Booklet
- William Henley, Jr., Associate Director
- firstname.lastname@example.org or (703) 254-0456
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at https://www.fdic.gov/news/news/financial/2016/.
To receive FILs electronically, please visit https://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).