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We responded to the FSB discussion paper on
outsourcing and third party risk. Our key points were that we urge
the FSB to:
Keep a razor-sharp focus on the practicality and
proportionality of the application of their rules. Critical
outsourcing requirements should be only for genuinely critical
activity. Without such an approach, the extra burden on providers
will increase costs, reduce competition and make services
uneconomical;
Focus on promoting the maximum consistency and efficiency of
approach between sectors and jurisdictions (including on assurance
and audit processes);
Recognize that Regtech solutions have been developed that allow
the efficient identification, management and reporting of
third-party risks by financial institutions; and
Be more active in supporting and working with industry
utilities to grow and strengthen the pooled or shared assessments
approach.
This response followed our recent
op-ed on the FSB's work and the growing regulatory interest in
outsourcing and third-party risk.'
Posted 11 January 2021 by David Cook, Executive Director, Regulatory Affairs, IHS Markit
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
