The NCUA and other federal banking agencies are asking for public feedback on new guidance for managing risks related to third-party vendors and service providers. The goal is to help banks and credit unions adjust their risk management practices based on the level of risk each third-party relationship presents.

This approach may help financial institutions focus their risk management efforts on the most important areas, such as financial risks, compliance with laws and regulations, and the effective use of resources.

The proposed guidance would also help banks and credit unions customize their risk management practices based on their size, complexity, risk level, and the types of third-party relationships they have. The agencies plan to replace existing third-party risk management guidance with this new framework to encourage greater consistency and support innovation across the banking industry.

Comments are due 60 days after publication in the Federal Register.