Category: Resources

29 Jun 2010

Outsourcing – Rewards and Risks

There are twelve booklets in the FFIEC IT Examination Handbook series, and ten of them make reference to the importance of managing third-party relationships. Today, the vast majority of financial institutions outsource at least one business function, and almost 50% of institutions outsource at least one critical business function. Among community financial institutions, the percentages are even higher. The two biggest reasons for outsourcing are to cut costs and to gain expertise, but there may be other advantages, such as to increase management focus on core business functions, or to refocus limited internal resources on core functions. Ultimately, the decision to outsource should fit into the institution’s overall strategic plan and corporate objectives.

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15 Jun 2010

Disaster Recovery & Strategic Planning: How alignment can reduce risk and cost

If it’s been done correctly, your business continuity program has been developed to support your Banks’ strategic plan. The capabilities of your hardware and software have been carefully selected to coincide with the needs of your target market. Your financial projections are based on your ability to successfully penetrate your target market, and your DR program provides assurance that your critical business processes will continue functioning to serve your customers in the event of a disaster. In short, the objectives of your strategic plan should be reflected in the priorities of your DR plan (specifically in the business impact analysis and the risk assessment phases), and your recovery procedures will assure process recovery within the pre-defined limits.

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07 Jun 2010

Vendor Management – BITS and Pieces

The effective management of critical vendors is an essential risk control. The FFIEC mentions this several times in their Examination Handbooks, most recently in the “Information Security” Handbook from July, 2006. Although most financial institutions are accustomed to approaching this from their own perspective, i.e. from the serviced side, this white paper will take a different perspective and approach this issue from our side; the side of the servicer.

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