Northampton, MA –News Direct – Fifth Third Bancorp
Fifth Third has a strong third-party management program for the acquisition of goods and services. Read more in the Environmental, Social and Governance Report 2020 from page 46.
Our Supplier Code of Conduct sets out Fifth Third’s expectations for ethics, human rights, labor and environmental standards across our supplier network. Fifth Third suppliers are expected to demonstrate the same level of commitment to ethical business practices.
Our aim is to achieve the Bank’s strategic objectives and to maintain our commitment to providing a level playing field to all relevant suppliers. To achieve this goal, we seek strategic partnerships with highly qualified sources who provide solutions that improve our processes, increase the quality of our products and services and improve efficiency.
We perform our third party selection process in accordance with the highest standards of integrity, fairness and objectivity. Our Supplier Diversity team reviews each sourcing opportunity to ensure that diverse suppliers are included in the portfolio of potential third parties. A thorough assessment and due diligence are carried out on all third parties prior to integration, paying particular attention to the protection and security of Bank and customer data.
The Bank is focused on promoting a strong culture of risk and compliance, which means that all employees are responsible for managing the risks associated with relationships with third parties.
Initiation & Selection
Fifth Third seeks to establish strategic partnerships with highly qualified third parties who provide solutions that improve our processes and service levels, increase the quality of our products and services and reduce our total costs while meeting the expectations of Fifth Third Bank by risk management and compliance. We also believe that promoting supplier diversity is integral to our success and we are proud of the many alliances and partnerships we have with various companies throughout our footprint.
Due diligence review
Once the initiation and selection have been completed but before the execution of a contract, we carry out due diligence to assess: the risk that a third-party product / service may present to the Bank; the ability of the third party to manage all risk issues related to the individual product (s) purchased or the service (s) being performed; the strength of the third party control environment; and the ability of the third party to effectively mitigate risk.
This phase produces and secures a contract that details the third party’s obligation, including standard contractual language and other legal requirements (terms and conditions), service level agreements, and appropriate approvals. Service level agreements include remedies for non-performance and are designed to recognize and resolve issues in a timely manner.
Fifth Third sets up the payment and performs the monitoring and oversight required when developing a formal monitoring and testing plan.
The level of continuous monitoring required for each third party is determined by the level of risk that the third party represents for the Bank. The formalization of continuous monitoring allows the Bank to properly monitor the performance of third parties and to remedy any problems that arise during the relationship.
Unfortunately, sometimes certain events can cause one or both parties to end the relationship. If required, the Bank will proceed in a professional manner, in accordance with the terms of the contract with the third party.
See additional media and more ESG storytelling from Fifth Third Bancorp at 3blmedia.com
See the source version on newsdirect.com: https://newsdirect.com/news/from-the-fifth-third-bancorp-2020-esg-report-third-party-management-256028694