Regulatory Alerts2011-05-01
Managing Outsourcing Risk: A Thematic Report on Practices within the Banking Sector of the Bailiwick of Guernsey
The Guernsey Financial Services Commission issued this thematic report to evaluate the management of outsourcing risks within the local banking sector following its 2010 Guidance Note. The review found that while most banks actively manage outsourcing arrangements, significant vulnerabilities persist regarding the treatment of intra-group outsourcing and the absence of exit strategies. The Commission mandates that local boards retain active oversight of all outsourcing activities, including intra-group arrangements, and requires robust due diligence and contingency planning to ensure regulatory compliance and service continuity.
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