The Training Environment For Financial Services

Outsourcing in Financial Services

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Outline and Objectives

 

Financial services institutions enter into outsourcing arrangments for a variety of purposes, including: costs savings; streamlining; process improvements; restructuring; and to gain access to specialist services or technology. To achieve any of these objectives whilst also mitigating the resultant regulatory concerns and operational risk, firms must develop and maintain an effective outsourcing governance and risk management framework.

 

The UK PRA rulebook defines ‘outsourcing’ as ‘an arrangement of any form between a firm and a service provider, whether a supervised entity or not, by which that service provider performs a process, a service or an activity, whether directly or by sub-outsourcing, which would otherwise be undertaken by the firm itself’.

 

This course will help you to identify and apply best practice in the governance and management of outsourcing arrangements and understand regulatory expectations in this area of high regulatory focus.

 

Attending this course will help you to:

  • Understand the regulator’s concerns and expectations
  • Create robust governance arrangements and monitoring
  • Develop, improve and maintain a written outsourcing policy
  • Perform appropiate due diligence on all potential service providers
  • Assess the potential risks of third pary arrangements, including outsourcing
  • Understand the key considerations when documenting outsourcing arrangements
  • Understand data security expectations
  • Determine access, audit and information rights
  • Ensure business continuity and exit plans
  • Understand the elephant in the room – operational resilience

Who will benefit

 

The course will benefit financial services professionals involved in outsourcing in any capacity, including those new to outsourcing management, experienced outsourcing managers from other industries, individuals from outsourcing service providers who need to understand the regulatory environments, as well as Compliance, Audit and Risk management specialists in firms that use or may be about to use outsourced services.

 

Training Approach

 

This course will comprise a blend of trainer presentation, group discussions, exercises and examples. There will be ample opportunity for questions, experience sharing and networking. All course documents, (as well as refreshments and lunch for face-to-face courses) will be provided.

 

 

Course Leader

 

The course will be lead by Andrew Sheen. Andrew is best know for the 8 years he spent at the UK regulator, firstly in the FSA and subsequently at the PRA. In his time with these authorities Andrew was manager of the Operational Risk Policy Team before moving to head the team responsible for providing Operational Risk subject matter expertise to supervisors. Andrew also represented the UK on the Basel Committee for Banking Supervisors Operational Risk Working Group and the European Banking Authority’s Operational Risk Working Group.  

 

Since retiring Andrew has been actively involved in the provision of training and advisory services in all aspects of operational risk management and is currently advising several banks looking to enhance their operational risk frameworks.

 

Course Programme

 

Session

Content

Outsourcing in financial services:                             the business and regulatory environments

  • Business drivers and challenges
  • Regulatory expectations – the PRA, FCA and EBA
  • Material vs non-material outsourcing

New outsourcing arrangements

  • Due diligence requirements
  • The regulator’s expectations

Governance frameworks and relationship management

  • The outsourcing life cycle
  • Governance
  • Outsourcing policy
  • Absence of evidence is evidence of absence

Risk management of outsourcing arrangements

  • Identifying risks and controls
  • Regulatory MI expectations
  • Key risk indicators
  • Access, audit and information rights
  • Has anything changed as a result of Covid-19

Business Continuity and Operational Resilience

  • Why is outsourcing important for business continuity and operational resilience
  • Regulatory guidance

Exit strategies

  • Regulatory expectations
  • Agree on the way in, not out
  • Approaches to an effective termination

Conclusion

  • Any outstanding issues
  • Questions

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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