Banking, Insurance and Life Insurance (prudential standard) determination No. 1 of 2014 - Prudential Standard CPS 231 - Outsourcing
The role of the Board and senior managemThe role of the Board and senior management
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The role of the Board and senior management
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A regulated institution must identify, assess, manage, mitigate and report on risks associated with outsourcing to ensure that it can meet its financial and service obligations to its depositors, policyholders and other stakeholders.
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A regulated institution must have procedures to ensure that all its relevant business units are made aware of, and have processes and control for monitoring compliance with, the outsourcing policy.
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The Board is ultimately responsible for any outsourcing of a material business activity undertaken by a regulated institution. Although outsourcing may result in the service provider having day-to-day managerial responsibility for a business activity, the regulated institution is responsible for complying with all prudential requirements that relate to the outsourced business activity.