include additional controls such as encryption or multi-factor authentication. 2. Increased Transparency Performing enhanced due diligence helps create a more transparent relationship with your vendors, which improves communication and trust between the two parties. 3. More Comprehensive Assessments EDD helps you go beyond the standard assessment process and get a snapshot of potential risks that may not be visible on the surface. 4. Easier Compliance With enhanced due diligence, it’s easier to stay compliant with federal regulations such as state laws. 5. Better Reputation Enhanced due diligence helps protect your banking institution’s reputation by reducing risk and ensuring that you’re taking all the necessary steps to keep customers’ data safe. Mike Gilmore is the Chief Compliance Officer of RESULTS Technology and a Certified Information Systems Auditor (CISA) with more than 30 years of experience in the banking industry. RESULTS Technology provides IT services to community banks across the Midwest. In his role as CCO, Mike provides compliance and risk assessments, audit and exam support, and policy documentation. He can be reached at mgilmore@resultstechnology.com. Are There Specific Enhanced Due Diligence Requirements for Banks? Yes, according to the Federal Financial Institutions Examination Council (FFIEC), when it comes to enhanced due diligence, banks should: • Perform due diligence on all third-party vendors • Conduct regular risk assessments and monitor ongoing activities with the vendor • Review contracts and agreements related to the vendor • Monitor customer activity related to the third-party vendor By following these guidelines, banks can ensure that they’re doing all they can to protect customer information and maintain a secure banking environment. Enhanced due diligence is an important part of any bank’s security program, so make sure it’s on your list of priorities. With the right processes in place, you can eliminate potential risks and improve the cybersecurity of your community bank. Are You Ready to Get Started on Enhanced Due Diligence? RESULTS Technology specializes in cybersecurity for community banks nationwide to help them stay compliant and secure. Our team of dedicated professionals will provide the training, tools and resources you need to keep your community bank secure so that you can keep your customers safe and protect your reputation. Schedule a call today to learn more about how we can help! ■ The Show-Me Banker Magazine | 29
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