Welcome » IT Booklets » Outsourcing Technology Services » Risk Management
Risk management is the process of identifying, measuring, monitoring, and managing risk. Risk exists whether the institution maintains information and technology services internally or elects to outsource them. Regardless of which alternative they choose, management is responsible for managing risk in all outsourcing relationships. Accordingly, institutions should establish and maintain an effective risk management process for initiating and overseeing all outsourced operations.
An effective risk management process involves several key factors:
Typically, this process incorporates the following activities:
The preceding comments focus on risk elements specifically associated with outsourcing. For a broader perspective on IT transactional and operational risk, refer to the IT Handbook's "Supervision of Technology Service Providers (TSP) Booklet," which addresses outsourcing risk from the service provider perspective.