Managing The Risks of Outsourcing in Financial Services To Meet SM&CR Requirements

Does your approach to outsourcing support your business strategy and fall in line with FCA expectations?

Course Overview

Outsourcing can cut costs and improve the quality of non-core functions. But it can also transfer risk beyond your control.

Hidden fees, vendor solvency and data security are just some of the most common problems. Service providers may also have governance issues, landing you in hot water with the regulator.

The FCA considers your firm accountable. Though the work may be outsourced, regulatory responsibilities remain firmly in-house.

Introducing the right processes is an essential part of managing third-party risk. From Service Level Agreements (SLAs) to termination contracts, the right documentation will safeguard your business and demonstrate best practice to the regulator.

So join us for this one-day training course. We’ll work through the outsourcing cycle, helping you develop the controls and contingency plans required to protect your firm:

• Understand the regulator’s expectations (of your company and the service provider)
• Set practical and workable SLAs
• Introduce standards of best practice
• Identify the common risks of outsourcing
• Focus on risk management and contingency planning
• Easily evidence management controls to the regulator
• Exit planning and contract termination

Mitigate outsourcing risk, without losing the benefits. Outsourcing arrangements can become complex. But proper management of third-party services can slash your internal operating costs and boost efficiency. This course helps you get the right systems and processes in place to take full advantage.

Maximise the benefit of outsourcing. Gain a greater appreciation for the importance of watertight documentation that’s linked to outcomes. By tying incentives to performance you’ll get the best possible result from outsourcing.

Draw up resilient contingency plans. It is essential to prepare for worst-case scenarios. You’ll gather concrete examples from case studies to better understand the contingency plans you (and the provider) need to avoid business disruption.

Develop processes that promote quality. A strong outsourcing framework will let you monitor the performance of service providers at every stage of the job. You’ll demonstrate your strength of oversight to the regulator, while ensuring quality.

Establish trusted, transparent relationships. Become better at communicating your expectations to service providers. If you’re both on the same page, you’ll be able to evidence good management to the regulator and enjoy better working relationships.

Course Modules

• An introduction to outsourcing
• New arrangements and service level agreements (SLAs)
• Governance frameworks and good relationship management
• Managing risk in outsourcing arrangements
• Successful termination of contracts