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Outsourcing risk management in financial market: results of discussion of Bank of Russia consultation paper

12 May 2023
News

Financial market participants support in general the idea of creating a legal framework to manage outsourcing risks. Most readers of the paper believe that the share of processes that may be outsourced will increase over time. These are the results of the discussion of the Bank of Russia consultation paper.

According to experts, the issues of outsourcing in information technology (IT) are becoming particularly important. One of the current problems is the limited disclosure of confidential information to third-party organisations. Therefore, the introduction of transparent rules will ensure a high level of protection of disclosed information and the active involvement of outsourcing IT companies.

However, some market players argue that services for the development and technical support of the software of automated systems should be excluded from the regulatory perimeter if service providers do not have access to protected information or corporate IT infrastructure.

Many participants of the discussion noted that financial organisations should retain flexibility in outsourcing decisions, as well as the capacity to set their own measures to manage outsourcing risks.

The Bank of Russia will continue to develop approaches to regulating this sector and assessing potential areas for expanding its use based on the principle of proportionality. This will promote competitiveness in the financial market and improve the quality of services provided.

Preview photo: Pcruciatti / Shutterstock / Fotodom