Hkma Outsourcing Agreement

The hope is that with a better understanding of regulatory outsourcing requirements, institutions will be able to improve their service offerings in line with consumer expectations. According to Schumpeter`s theory, proactive bank CEOs should often seek change and use constructive destruction in their companies` strategy to remain relevant to industry progress and customer wishes. Identifying the nature of the necessary changes can often lead to a desire to outsource certain services, which has provided banks with a good way to improve their services since the early 1990s. The Hong Kong Monetary Authority (HKMA) has published a chapter for outsourcing, HKMA SA-2 Supervisory Policy Manual HKMA (SA-2). In summary, SA-2 responds to outsourcing as a context and identifies surveillance concerns. HKMA did so under Section 2.1.1 by maintaining the company`s final responsibility to the board of directors and management of the institution. The article will pay particular attention to the data, as it is one of the main concerns of an outsourced activity. The processing of data at different levels of sensitivity, including relational structures across data points, is often not evident in the interpretation of regulatory outsourcing requirements. Therefore, good governance should take into account how the links between data points evolve over time as part of any post-outsourcing maintenance. As HKMA`s definition of consumer data points out, reference points are linked to interactions between them, with links – or edges – giving different meanings between these summits.

It is therefore essential to understand how these outsourcing activities can be used with a focus on regulation to minimize frequent implementation problems – which in turn could lead to legal and reputational risks if not dealt with properly. Board accountability for subcontracting companies contributes to the implementation of the additional recommendation guidelines in SA-2 and has a deterrent effect that weighs heavily enough on risk owners to fully assess whether such an agreement is necessary or not, and to appropriately mitigate the inadequacies associated with outsourced activity prior to engagement. The regulation regulates the use of data for both the private and public sectors, both online and offline, and therefore requires special attention.

Posted in Uncategorized