Regulatory evolution of third-party risk management and its implications for in-house lawyers

Abstract This article provides an overview of the main requirements of the European Banking Authority’s Guidelines on Outsourcing Arrangements and the European Banking Authority’s draft Guidelines on the sound management of third-party risk and offers a practical guide for in-house lawyers on helping their firms meet these requirements. We will explore the proposals for revising the current regime and what impact this may have on legal teams. Given the global reach of many financial institutions, we also provide a brief comparative analysis with the regimes in the UK and the US to equip in-house lawyers with the tools to leverage the similarities, and address the differences, presented by these regimes when trying to implement a global framework for third-party risk management within their firm.