WILL PACKARD | Managing Principal, and Head of Operational Resilience, Capco
Use of third parties to outsource elements of critical services has become more acceptable among financial services organizations in recent years. And while there are certainly benefits to outsourcing, when it relates to critical services, however, it can introduce challenges around the resilience of the service. It is these challenges that have attracted the attention of regulators within major global financial centers.
In this paper, we will explain how firms should engage with third parties that are involved in the delivery of important or critical business services using a three-phase approach to operational resilience – prepare, manage, and learn. We will look at the practicable steps that firms can adopt to better align third parties with their operational resilience environment as well as meet the regulators’ expectations on how those third parties are managed.