Key Takeaways from the Basel Committee’s 12 Principles for Managing Third-Party Risks
On July 9, 2024, the Basel Committee on Banking Supervision (BCBS) released their proposed consultative document, Principles for the Sound Management of Third-Party Risk, intended for large, internationally active banks and their prudential supervisors, as well as smaller banks and authorities in all member countries. The principles create a common baseline for managing third-party risks, while allowing flexibility to accommodate evolving practices and regulatory frameworks.