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2.4.1.8.1 Intragroup outsourcing risk

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According to the Central Bank of Bahrain, intragroup outsourcing “is an arrangement in which one company within a group of companies provides services for another company within the same group that could also be or usually have been provided in-house.”[97] Thus, we define intragroup outsourcing risk as the risk that engaging another group entity to provide certain services adversely impacts the institution’s operations and risk management. In this situation, after a risk event or even after detection of weaknesses in the way services are provided, the group leadership can more directly influence adjustment measures to prevent further risk events or ensure mitigation of this risk before its occurrence.

Non-financial Risk Management in the Financial Industry

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