Charles Nerko, team leader for data security litigation, had his “Protecting Your CU in Core Processing & Outsourced Technology Contracts” article published in Credit Union Times. The article explores how financial institutions can protect themselves and their customers from security risks when doing business with third-party technology vendors by negotiating comprehensive vendor contracts. Charles says, “Without a solid contract, credit unions could face immense legal liability for problems caused by their vendors.”
In his article, Charles details three best practices financial institutions can implement when drafting tech contracts to avoid costly lawsuits and protect their members:
- Specify clear performance standards.
- Set remedies that incentivize the right behavior.
- Secure a meaningful indemnity.
Charles says, “Technology contracts are critical risk management tools for credit unions.” He advises financial institutions to have an experienced technology attorney draft and review their contracts. Similarly, technology litigators can help financial institutions if and when problems with their vendors arise.
To read Charles’s article, click here.