The Challenge
Existing outsourcing management processes no longer meet all regulatory requirements (e.g. EBA/GL/2019/02) and are performed without software support.
Unclear responsibilities along the entire OSM process. Significant backlogs in the processing of contracts with third-party providers (e.g., open/outdated classification or risk analyses as well as provider and performance monitoring not fully set up).
The approach
Identification and evaluation of the current need for action with the affected stakeholders, including analysis and evaluation of optimization approaches (e.g. with regard to efficiency). Redefinition of the group-wide outsourcing management processes for the initial (risk) assessment of outsourced services, the ongoing (risk) management as well as the termination of outsourced services (incl. adaptation of the process map and the bank’s set of written instructions1). Provider selection and implementation of the new software solution. Data migration of existing contracts into the new tool. Training and rollout of processes and systems. Support / coordination of backlog processing: Classification, risk analysis and renegotiation needs for existing contracts ( i.a. with regard to EBA/Guideline/2019).
The result
Full compliance with all applicable regulatory requirements in one group-wide outsourcing management process.Potential for optimization with regard to efficiency was realized, e.g. for intra-group Services. Requirements of internal stakeholders from 1st and 2nd line2 taken into account, e.g. risk analysis along new NFR taxonomy from Operational Risk. Improved transparency regarding workflow and responsibilities in the outsourcing management tool.