Financial Risk Manager Part 2
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When developing guidelines to manage operational risks in a potential vendor agreement, which recommendation would be the most appropriate for the committee to contemplate when assessing a third-party vendor's involvement in marketing the bank's financial products to prospective clients?
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.