The Financial Stability Board (FSB) was established by the G20 in 2009 in response to the 2008 global financial crisis. The FSB monitors the global financial system and recommends promoting and improving financial stability and reducing risk to financial markets.
The FSB has released a new toolkit, Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and financial authorities. The toolkit is centred on the role of third-party critical services concerning the potential for significant disruption of critical operations and institutions’ financial stability. The toolkit includes:
- Common terminology and definitions.
- Tools to identify critical services and manage the associated risks throughout the service lifecycle.
- Tools for supervising financial institutions in managing critical dependencies and systemic risk.