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Outsourcing relationships with service providers

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Assess management's ability to manage outsourcing relationships with service providers and software vendors contracted to provide wholesale payment system services. Evaluate the adequacy of terms and conditions, and whether they ensure each party's liabilities and responsibilities are clearly defined.

Consider: (a) adequacy of contract provisions including service level and performance agreements; (b) compliance with applicable financial institution and third party (e.g. Federal Reserve, CHIPS, SWIFT) requirements; and (c) adequacy of contract provisions for personnel, equipment, and related services.

Reference no: EM133246945

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