OCC won’t offer further guidance on ‘fourth-party’ risk
The onus is on banks to vet subcontractors during contract negotiations, the regulator says
The US Office of the Comptroller of the Currency has no plans to offer further guidance on the way firms manage the risk posed by their vendors’ vendors, despite concerns around so-called fourth-party risk.
Beth Dugan, the deputy comptroller for operational risk at the OCC, says a firm’s protection from its supplier’s subcontractors boils down to the contract it has with the vendor – a task best left to the bank itself, not regulators.
“These are contractual relationships that the OCC doesn’t
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