On 4 December 2023, the Financial Stability Board (FSB) issued a final report containing a toolkit for financial authorities and financial institutions as well as service providers for their third-party risk management and oversight.

The toolkit comprises four chapters:

  • Chapter 1 – list of common terms and definitions as a foundation.
  • Chapter 2 – summary of the toolkit’s approach. The primary emphasis is on critical services given the potential impact of their disruption on financial institutions’ critical operations and financial stability. It also looks holistically at third-party risk management, which is wider than the historical narrower focus on outsourcing, considering changing industry practices and recent regulatory and supervisory approaches to operational resilience.
  • Chapter 3 – tools to help financial institutions identify critical services and manage potential risks throughout the lifecycle of a third-party service relationship.
  • Chapter 4 – financial authorities’ current and developing approaches and tools for supervising how financial institutions manage third-party risks, and for identifying, monitoring, and managing systemic third-party dependencies and potential systemic risks. This includes non-exhaustive criteria to help financial authorities identify systemic third-party dependencies and assess potential systemic risks.