Financial Risk Manager Part 2
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As the committee develops guidelines for a prospective vendor agreement with a third-party vendor responsible for promoting the bank's financial products to potential clients, they aim to minimize operational risks. Which of the following recommendations would be the most suitable for them to adopt in order to achieve this objective?
A
The bank should review all third-party audit reports of the vendor that are publicly available.
B
The bank should ensure that the vendor's sales representatives are compensated mainly with commissions from the sale of the bank's products.
C
The bank should prevent the third-party vendor from having access to any of its critical processes.
D
The bank should be responsible for developing the vendor's contingency planning process to mitigate risk exposure to the vendor.