Third-party vendors play a critical role in the operations of financial institutions and healthcare organizations. They provide a wide range of services, including data processing, software development, and IT support. However, these vendors also pose a significant risk to the organization. They may have access to sensitive data, financial information, and other confidential information. As such, it is essential for organizations to conduct regular reviews of their third-party vendors to ensure that they are compliant with regulatory requirements and that their operations do not pose a risk to the organization. In this article, we will discuss best practices for performing third-party vendor risk reviews to pass US government regulatory audits for the Consumer Financial Protection Bureau (CFPB), Federal Financial Institutions Examination Council (FFIEC), Securities and Exchange Commission (SEC) and Health Insurance Portability and Accountability Act (HIPAA).

CFPB
The CFPB has the authority to supervise and regulate a wide range of financial institutions, including banks, credit unions, and non-bank financial companies. They have issued guidance on third-party vendor management, which outlines the expectations of financial institutions in managing third-party risks. The guidance emphasizes the importance of regular vendor risk assessments and monitoring the performance of third-party vendors.

FFIEC
The FFIEC is an interagency body that oversees the examination and supervision of financial institutions. They have issued guidance on third-party vendor management, which emphasizes the importance of regular vendor risk assessments and monitoring the performance of third-party vendors.

SEC
The SEC is responsible for enforcing federal securities laws and regulating the securities industry. They have issued guidance on third-party vendor management, which emphasizes the importance of regular vendor risk assessments and monitoring the performance of third-party vendors.

HIPAA
HIPAA is a federal law that regulates the use, disclosure, and safeguarding of protected health information (PHI). It applies to healthcare organizations, including hospitals, clinics, and insurance companies.

Best practices for performing third-party vendor risk reviews to pass regulatory audits include:

• Establishing a vendor management program that includes policies, procedures, and processes for identifying, assessing, and managing vendor risks
• Conducting regular vendor risk assessments to identify and evaluate potential risks
• Implementing a process for ongoing monitoring of vendor performance
• Establishing a process for managing and mitigating vendor risks