Outsourcing risk assessment

Financial institutions
An outsourcing risk assessment should consider the following:

objectives and service provider performance.
 * Strategic goals, objectives, and business needs of the financial institution.
 * Ability to evaluate and oversee outsourcing relationships.
 * Importance and criticality of the services to the financial institution.
 * Defined requirements for the outsourced activity.
 * Necessary controls and reporting processes.
 * Contractual obligations and requirements for the service provider.
 * Contingency plans, including availability of alternative service providers, costs and resources required to switch service providers.
 * Ongoing assessment of outsourcing arrangements to evaluate consistency with strategic
 * Regulatory requirements and guidance for the business lines affected and technologies used.