From: Nearshore Americas
by: Tim Wilson
The push in the United States from regulatory bodies advising on best practices for outsourcing relationships with third-party vendors may be due to cyber security concerns, according to Richard Raysman, one of America’s leading outsourcing lawyers.
“I think it relates to President Obama’s executive order 13636, which was issued on February 12, 2013,” Raysman told Nearshore Americas. “That executive order called for improvements in critical infrastructure and cyber security.”
Raysman notes that, some months after the order, we began to see the promulgation of guidelines for buyers and service providers. These include: the Consumer Financial Protection Bureau’s (CFPB’s) Bulletin 2012-03, issued April 13, 3012, which notified regulated institutions that third-party vendor and service provider relationships would be monitored; OCC Bulletin 2013-29 from the Office of the Comptroller of the Currency, issued Oct. 30, 2013, which addressed risk management for third-party relationships; and most recently the Federal Reserve Board’s “Guidance on Managing Outsourcing Risk”, which was issued on Dec. 5, 2013.