*Professor of Economics, School of Social Sciences and Languages, VIT University, Vellore, India
**Research Scholar, School of Social Sciences and Languages, VIT University, Vellore, India
Online published on 2 July, 2015.
After the introduction of anywhere anytime banking, many important functions are handed over to the vendors. Many bank functions like business products are outsourced and the third parties have the tendencies to give subcontract to other parties. If the third party fails to meet expectations, the bank may face significant risk and can have impact on customer bank relationship. The risk management life cycle must be properly taken care of. The present paper analyses on planning third party selection and reducing the operational risk for the banks.
Component, impact, operational risk, third parties, vendors
