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The EBA Outsourcing Guidelines are a set of guidelines issued by the European Banking Authority (EBA) that provide guidance on how financial institutions should manage the risks associated with outsourcing. The guidelines are applicable to banks and other financial institutions within the European Union that outsource their activities to third-party service providers.
The guidelines cover various aspects of outsourcing, including risk assessment, due diligence, contract management, monitoring, and exit strategies. The key requirements of the EBA Outsourcing Guidelines include:
Conducting a comprehensive risk assessment to identify and evaluate the risks associated with outsourcing activities.
Performing due diligence on third-party service providers to ensure that they have the necessary resources, expertise, and systems to deliver the services.
Developing robust outsourcing contracts that include clear terms and conditions, service-level agreements, and contingency plans.
Establishing a sound monitoring and oversight framework to ensure that third-party service providers are delivering the services as expected.
Implementing an exit strategy to manage the termination of the outsourcing arrangement and ensure the continuity of the services