1. Financial enterprises continue to use outsourcing service providers (which can be affiliated entities within the group or entities outside the group) to complete business activities previously undertaken by themselves.
2. Outsourcing can be that a financial enterprise transfers its business (or part of its business) to a service provider, or the service provider further transfers it to another service provider (i.e. "subcontracting").
When the regulated entity applies the advanced outsourcing principles to specific outsourcing business, it should consider the following issues:
1, which should be applied according to the importance of outsourcing business to the business of the supervised entity.
2. Affiliation or other relationship between the outsourcing entity and the service provider. When it is necessary to apply the outsourcing principle to affiliated entities, it can be modified appropriately to reflect the differences in outsourcing risks within the group.
3. Whether the service provider is regulated by an independent regulatory agency.
Extended data:
Risk and prevention of financial outsourcing;
The functions and business of the regulated entity can be carried out in many ways, and the related functions can be divided into product manufacturing, marketing, back-office support and distribution. If various functions are performed in different places, but are still handled by departments within the entity, this situation is not outsourcing. Entities should guard against related risks within the framework of conventional risk management.
Various industry and regulatory reports point out that outsourcing involves risk transfer and management (mostly related to cross-border business). Various industries and regulators believe that the increasing dependence of regulated entities on outsourcing may affect their ability to manage risks and comply with regulatory requirements. In addition, the regulatory authorities are also worried that the ability of the regulated entity to take appropriate measures to manage risks and comply with regulatory requirements may be difficult to effectively demonstrate to the regulatory authorities due to outsourcing. One of these problems caused by outsourcing business is that over-reliance on outsourcing business will seriously affect the sustainability of the supervised subject and the ability to fulfill customer responsibilities.
The regulated entity can take the following measures to reduce risks: formulate a comprehensive and clear outsourcing policy, establish an effective risk supervision process, require outsourcing companies to formulate emergency plans, reach a reasonable outsourcing contract through negotiation, and analyze the financial and infrastructure conditions of service providers. The supervision department can reduce the problems in the process of outsourcing by the following measures: fully consider the outsourcing situation when evaluating a single company, and consider the risk concentration of service providers when analyzing system risks.
Baidu encyclopedia-financial outsourcing