Answer to Question #280438 in Finance for Jabs

Question

DESCRIBE the relationship that banks have with third party distributors of its services or products (e.g. couriers who deliver credit cards) – how is this managed to make sure all stakeholders needs are met.

Answer 1

The relationship that banks have with third party distributors of its services products is regulated by laws and policies which ensure operational and managerial standards for safety and soundness as well as technical, administrative and physical safeguards which protect the security, confidentiality and integrity of customer information. A bank should adopt risk management processes commensurate with the level pf risk and complexity of its third-party relationships and ensure comprehensive risk management and oversight of the third party relationships involving critical activities.