Five Ways To Minimise Outsourcing Risk

Kevin Curtis, Head of AIFM Oversight - Ireland, examines the recently published guidelines on outsourcing by the Central Bank of Ireland under CP138 and outlines the steps managers can take to reduce exposure to risk.

The role of outsourcing throughout the broader financial services industry has gained significant traction in the past decade. Frequently used as a strategic tool, businesses of all sizes across the financial spectrum have turned to outsourcing to deliver on specific objectives.

Nowhere is this more true than in funds services industry - where outsourced and delegated relationships are increasingly playing a critical role in the industry.

Considering the level of regulation that exists across the broader financial services landscape, it's perhaps unsurprising, then, that outsourcing is becoming a key point of focus. The most recent development being the publication by the Central Bank of Ireland ("CBI") in February 2021 of Consultation Paper 138 ("