The Training Environment For Financial Services

Outsourcing in Financial Services - remote delivery

26 and 27 January 2021, remote delivery

9:30am to 12:45pm each day.

Course fees: £575.00 + vat per person

Savings for multiple registrations

Outline & Objectives

Financial services organisations institute outsourcing arrangements for a variety of objectives: cost savings, process improvement, restructuring, access to specialist services or technology. In order to achieve any of these objectives, and mitigate the regulatory and operational risks also associated with outsourcing, it is vital firms develop and maintain an effective governance and risk management framework. Recent events, including the impact of COVID-19, increased regulatory focus on operational resilience of critical business services and the regulators’ endorsement of the new EBA guidelines on outsourcing have all placed a spotlight on financial firms’ oversight of their outsourced arrangements, particularly in light of recent FCA thematic reviews. This focused workshop will help firms and identify and apply best practice in the governance and management of outsourcing arrangements and understand and satisfy PRA / FCA expectations in this area of high regulatory risk.

Specifically, attending this course will help you to:

  • Understand the regulators' expectations of your firm at all stages of the outsourcing lifecycle 
  • Employ risk mitigation techniques at due diligence and contract initiation 
  • Understand how outsourcing impacts on your operational resiience
  • Carry out effective risk identification and scoring in order to design a risk based control framework
  • Develop and use timely, appropriate and meaningful MI, including Key Risk and Key Control indicators 
  • Demonstrate robust governance and monitoring to the regulators
  • Anticipate and manage risks at contract termination 

Who will benefit

This course will be of immediate and ongoing benefit to financial services professionals new to outsourcing management, experienced Outsourcing managers from other industries, individuals from Outsourcing Service Providers who need to understand the regulatory environment, as well as Compliance, Audit or Risk Management specialists in firms that use or may be about to use outsourced services.

Training Approach

This course will be delivered via a real time slide sharing and live audio visual platform, accessible by desktop computer, laptop, tablet or smartphone. The same core content will be covered as in the original face to face training course, with the format and style adapted for remote delivery. Group size is limited to ensure a high quality and interactive learning experience.

Course Leader

Eithne McManus has over 20 years' experience in the financial services industry, in a variety of risk and financial management roles, and is now a consultant specialising in risk and capital management, particularly in relation to outsourcing. A qualified actuary, Eithne spent much of her career with City of Westminster Assurance, the UK arm of Irish Life and Permanent, where she was Chief Financial Officer before becoming Chief Executive. Among Eithne’s responsibilities as Chief Executive, were the governance and risk management of CWA’s material outsourcing arrangements, including the negotiation of the company’s original outsourcing arrangement and the transition of that outsourcing arrangement to a new provider. After the sale of CWA to Chesnara, Eithne assumed responsibility for risk management and capital assessment within the Chesnara group as a whole, before leaving in 2007 to establish her own consultancy.

Course Programme

Session Aim Content
Outsourcing in financial services: the business and regulatory environment To consider why financial services organisations outsource and what the regulators expect of the regulated firm and the service provider
  • Key business drivers and challennges for outsourcing
  • Overview of regulatory requirements for the control and monitoring of material outsourcing arrangements, including recent FCA and PRA consultation papers (CP19-32 and CP30-19) along with the EBA outsourcing guidance which has been adopted for certain UK firms
  • Assessing whether outsourcing arrangements are ‘material’/ ‘critical and important’ and what the implications of this are
New outsourcing arrangements - contract initiation To identify the risks around the initiation of outsourcing arrangements and to explore some techniques to control these
  • Techniques for carrying out due diligence in advance of entering into outsourcing contracts
  • Regulatory expectations for new contracts
  • Transition issues
Governance frameworks and relationship management To examine approaches managing outsourcing arrangements and to develop tools to enable this management to be evidenced
  • Typical lifecycle of an outsourcing arrangement
  • Evidencing good monitoring and management to the regulator
  • Governance implications of intra group outsourcing
  • Relationship management in a socially distanced world
Risk management of outsourcing arrangements To explore techniques for the identification of outsourcing risks and their control
  • Identification of outsourcing risks and appropriate controls
  • Case Study: designing effective controls in financial services outsourcing
  • How the outsourcing control environment can and must change in response to COVID-19
Management Information and SLAs To understand why outsourcing can affect MI requirements and to explore appropriate MI for an outsourcing arrangement
  • Regulatory expectations for MI and outsourcing
  • Key risk indicators and other key elements of an outsourcing MI pack
Operational Resilience: COVID-19 and other challenges To know how to manage the operational resilience risks around outsourced arrangements
  • FCA’s new expectations for operational resilience of critical business services
  • Business continuity planning
  • Exit planning
  • Oversight of operational resilience in a COVID-19 world
Terminating Outsourcing Arrangements A short session to review how the risks of contract termination can be mitigated
  • Regulatory expectations on contract termination
  • Approaches to an effective exit transition

This course can be delivered in-house at a time and location to suit your business and tailored to suit your people and organisation. We can also create bespoke training when something very specific is needed.Please contact us to discuss your requirements in more detail and at no obligation.

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