The Basel Committee has published Principles for the sound management of third-party risk, setting a common baseline for banks and supervisors on managing risks arising from third-party service provider arrangements. The principles respond to the banking sector’s growing dependence on third-party providers as finance becomes more digitalised and banks adopt innovative approaches for services that were previously not undertaken. Building on the outcome of the Committee’s previous consultation process, the framework is designed to reflect a larger and more diverse third-party service provider environment while remaining flexible enough to accommodate evolving practices and regulatory frameworks across jurisdictions. For the banking sector, it supersedes the principles in the 2005 Joint Forum paper Outsourcing in financial services. The Committee also indicated it will continue monitoring prudential developments related to the digitalisation of finance and financial technology.
Bank for International Settlements 2025-12-10
Basel Committee publishes principles for banks’ sound management of third-party risk
The Basel Committee issued Principles for managing third-party risk, setting a baseline for banks and supervisors. This framework addresses the banking sector's reliance on third-party providers amid digitalisation, replacing the 2005 Joint Forum paper on outsourcing. The Committee will monitor prudential developments in finance digitalisation and technology.