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
