Checking vendors for Y2K compliance.The banking industry, which has taken action to reduce its own year 2000 (Y2K) risks, now requires its vendors to do the same. Bank regulatory agencies issued guidance on how banks can ensure that service providers and software vendors are prepared for computer-related problems or failures that could occur on January 1, 2000. The Federal Financial Institutions Examinations Council (FFIEC), which comprises the Federal Reserve Board, the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. , the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. , the Office of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. and the National Credit Union Administration The National Credit Union Administration (NCUA) is responsible for chartering, insuring, supervising, and examining federal credit unions (FCUs) and for administering the National Credit Union Share Insurance Fund. , published an interagency statement that outlines a due-diligence process for each "mission-critical" service and product vendors supply. Guidance Concerning Institution Due Diligence in Connection With Service Provider and Software Vendor Year 2000 Readiness clarifies the importance of effective monitoring and testing programs, including contingency plans for use in the event of a breakdown. According to the statement, due diligence gives managers the ability to * Identify the mission-critical services and products. * Understand and articulate vendors' obligations for becoming Y2K-compliant. * Establish testing and monitoring procedures to verify that vendors are taking appropriate action. * Adopt contingency plans. Copies of the FFIEC statement are available on the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). Web site at www.ffiec.gov. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion