Welcome » IT Booklets » Outsourcing Technology Services » Risk Management » Risk Assessment and Requirements
Management should:
Outsourced IT services can contribute to operational risks (also referred to as transaction risks). Operational risk may arise from fraud, error, or the inability to deliver products or services, maintain a competitive position, or manage information. It exists in each process involved in the delivery of the financial institutions' products or services. Operational risk not only includes operations and transaction processing, but also areas such as customer service, systems development and support, internal control processes, and capacity and contingency planning. Operational risk also may affect other risks such as interest rate, compliance, liquidity, price, strategic, or reputation risk as described below.