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2.4.1.8.2 External outsourcing risk

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We define external outsourcing risk in line with the EBA definition of outsourcing risk as the risk that engaging another third party to provide certain services adversely impacts the institution’s operations and risk management. Here, the strongest levers to mitigate such risks are clear and precise service-level agreements (“SLAs”) with the third-party provider, and a clear definition of the interfaces, services and processes impacted by the third party.

Non-financial Risk Management in the Financial Industry

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