Often, third parties will use third-party vendors to handle their technological issues and IT matters. One risk NOT affiliated with using a third-party vendor is:

Select one:

A significant investment in resources and man power hours are not necessary when first introducing a vendor to a financial institution.

If the vendor fails to do its job, a financial institution could be exposed to significant risk.

Customers of a financial institution could be subject to significant risk if a vendor is negligent in its responsibilities.

A financial institutions normal business operations could be disrupted while seeking a replacement vendor.

When a regulatory agency allows a financial institution to continue to operate even after all its capital funds are completely gone, it is referred to as:

Select one:

Prompt corrective action

Capital forbearance

Depository brokerage

Least-cost resolution