Course Details
Outsourcing: Risks, Implications and SBP Guidelines
Outsourcing: Risks, Implications and SBP Guidelines

Subject: One day Seminar on “Outsourcing: Risks, Implications and SBP Guidelines” 1 -- Chief Guest – Syed Irfan Ali, Executive Director SBP 2 – Mr. Rajesh Raheja (Joint Director, State Bank of Pakistan) 3 – Mr. Rehan Masood (Deputy Director, State Bank of Pakistan)

The details of the program are appended below for convenience:- 

Program Details

Industry research and surveys by regulators show financial firms outsourcing significant parts of their regulated and unregulated activities. Outsourcing, at one hand, can save money and provide required expertise, it can also pose huge risks if not monitored/managed properly. This session is designed to provide banking professionals an insight into the world of outsourcing. It will be a rigorous session held by officials from State Bank of Pakistan with the aim to provide a deep understanding of the risks, costs, regulatory and compliance framework of outsourcing arrangements. The session will be helpful for bankers willing to manage their outsourcing risks, cut costs and drive efficiency while improving profitability and reputability.
Why to conduct outsourcing related trainings in your organizations??
1.    Capitalize on core banking business
2.    Benefit from economies of scale and cut costs
3.    Increase business efficiency and productivity
4.    Ensure standardization and uniformity
5.    Ensure regulatory compliance

 

Workshop Overview

Banks are increasingly using third party services to carry out activities, functions and processes as outsourcing arrangements to meet new & complex challenges like innovation in technology, increasing competition, economies of scale and improvement in quality of service to clients (i.e., customers, depositors or investors). The practice, however, can increase their dependence on third parties and consequently their risk profile. In order to allow the licensed institutions to effectively manage the outsourcing arrangements, the guidelines

have been formulated to ensure that they are able to meet their financing and service obligations. These guidelines, however, in no way encourage outsourcing, especially the performance of core banking functions.

The licensed institutions, while deciding to outsource any function, should ensure that outsourcing should not reduce the protection available to depositors or investors nor be used as a way of avoiding compliance with regulatory requirements. It will be responsibility of the licensed institutions to continue to satisfy all regulatory/legal requirements issued to them from time to time, while entering into any outsourcing arrangement.

Why Your Officials need this Workshop

Capitalize on core banking business,

Benefit from economies of scale and cut costs

Increase business efficiency and productivity

Ensure standardization and uniformity

Ensure regulatory compliance

Applicable to

Commercial banks, Islamic Banks, Microfinance Banks and

Standalone Microfinance Branches, Development Financial Institutions DFIs,

Companies Dealing with all above as a Vendor Outsource

Who should attend

All Management / Unit Heads and executives with Outsourcing / Vendor Management responsibilities including Information Technology, HR and Admin, Risk Management, Compliance, CAD,  Internal Audit, FMU, Internal Control, IFRS, Finance Professionals.

 

Understanding the Outsourcing

Outsourcing arrangements in Banking Sector – Need Assessment

Core Principles of Vendor Management

  1. Selection of Vendors as Partners
  2. Due Diligence framework for Vendors
  3. Management of Partners for Outsourcing

Outsourcing and Vendors Contracts / Sub Contract Agreements

  1. Service levels and performance requirements
  2. Pricing and fee structure
  3. Dispute resolution arrangements
  4. Confidentiality, privacy and secrecy of information
  5. Liability and indemnity
  6. Ensuring access to SBP.
  7. Outsourcing Global Practices
  8. Restricted Activities in Outsourcing and Vendor Management
  9. IT Outsourcing – Economies of Scale
  10. Risks & Rewards of Outsourcing
  11. Continued Supervision tools
  12. Redressal of Grievances about Outsourced Services
  13. Contingency Planning
  14. Board & Management Responsibilities
  15. Confidentiality of Customer Information in Outsourced Functions
  16. Issues for Regulators
  17. SBP’s Key Policy Objectives and Initiatives
  18. Business Continuity Plans 

SBP's Guidelines on Outsourcing Arrangements by Banks

  1. Current Status of Outsourcing of Services in Pakistan
  2. Audit and monitoring procedures

Industry Response

  1. Common issues of  Compliance –Banking Industry
  2. Responses of Banking Industry
  3. Regulatory Impact Assessment
  4. Outsourcing of Services in Pakistan – The way forward
  5. Case Studies

Upcoming Trainings
There is no upcoming event for this course

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