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Home » Store » News » OTS Outlines Risk-Management Guidelines for Third-Party Outsourcing Arrangements

OTS Outlines Risk-Management Guidelines for Third-Party Outsourcing Arrangements

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Hiring specialists to do specialized work can be a highly cost-effective way to boost profits, but the practice does impose additional risk-management responsibilities on management, according to new guidance issued by the Office of Thrift Supervision. “Outsourcing arrangements can help improve earnings,” said James Gilleran, director of the OTS, but “institutions must be aware that the reduced financial and operational control over third-party activities poses additional risk.
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