Outsourcing of Business Activities, Functions and Processes

OSFI guideline for outsourcing business activities to external providers

Office of the Superintendent of Financial Institutions of Canada guideline setting out expectations for regulated firms that outsource business activities to service providers. Firms are expected to: i) evaluate risks associated with existing and proposed outsourcing arrangements; ii) develop processes for determining materiality of arrangements; iii) implement programs for managing and monitoring risks, commensurate with materiality of arrangements; iv) ensure that boards of directors, chief agents or principal officers receive information sufficient to enable them to discharge their duties under the guideline and; v) refrain from outsourcing certain business activities to external auditors.

Publisher: National Regulators     Release date: Feb 2009     Country: Canada

Type: Guideline

Peer: New Technology-Based Outsourcing Arrangements

Topics: Risk management, Operational risk

Sectors: Banking, Insurance, Pensions