Key Themes in Outsourcing and Third-Party Risk Management

This technical report discusses the key themes of resiliency, outsourcing, and third-party risk management regimes relevant to financial entities. It outlines the compliance challenges faced by EU-based financial institutions as they prepare for the EU Digital Operational Resilience Act (DORA), which mandates compliance by January 2025. The report highlights the significant financial resources allocated by institutions for DORA compliance, as well as the regulatory expectations for third-party risk management. It details the convergence of regulatory guidance across jurisdictions, including the European Banking Authority and the Financial Conduct Authority, emphasizing the importance of robust governance frameworks and risk assessment processes. The report also addresses the impact of emerging technologies, such as artificial intelligence, on regulatory expectations and operational resilience. Overall, it presents a comprehensive examination of the current landscape of outsourcing and third-party risk management in the financial sector, including best practices and challenges faced by organizations.