Principles for the sound management of third-party risk

As part of its 2025-2026 work programme, the Basel Committee is advancing various supervisory initiatives related to the digitalisation of finance. Banks' increased dependency on third-party service providers necessitates evolving the traditional concept of outsourcing to encompass a broader range of third-party arrangements. The principles set a common baseline for banks and supervisors in managing risks associated with third-party providers, while allowing sufficient flexibility to adapt to evolving practices and regulatory frameworks across jurisdictions.