Third-party service relationship

Risk management - supply chain.

A formal arrangement for the provision of one or more services to a financial institution by a service provider.

"Third-party service relationships include arrangements for the provision of services to a financial institution by an intra-group service provider; and

Third-party service relationships exclude financial services transactions between financial institutions and their employees, customers or counterparties (e.g. taking deposits from or lending to consumers; providing insurance to policyholders; or providing/receiving financial market infrastructure (FMI) services, such as clearing or settlement, to other financial institutions), but include services supporting these functions (e.g. compliance or back-office activities relating to these transactions)."

Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and financial authorities, Financial Stability Board, December 2023.

See also

• Clearing
• Compliance
• Counterparty
• Financial authority
• Financial institution
• Financial Market Infrastructure (FMI)
• Financial Stability Board (FSB)
• Outsourcing
• Risk
• Risk management
• Service provider
• Settlement
• Supply chain
• Third party
• Third-party risk
• Third-party service provider

External link

• Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and financial authorities, Financial Stability Board, 4 December 2023