Contractual protections against liability. Assess the extent to which the institution Reviews the financial stability of the technology service provider; Analyzes the service audited financial statements and annual reports; provider’s Assesses the service length of operation and market share; provider’s Considers the size of the contract in relation to the size of the service provider; institution’s Reviews the service level of technological expenditures to ensure on-going provider’s support; and Assesses the impact of economic, political, or environmental risk on the service provider’s financial stability. Evaluate whether the due diligence considers the following: institution’s References from current users or user groups about a particular technology service reputation and performance; provider’s The service experience and ability in the industry; provider’s The service experience and ability in dealing with situations similar to the provider’s environment and operations; institution’s The cost for additional system and data conversions or interfaces presented by the various technology service providers; Shortcomings in the service expertise that the institution would need to provider’s supplement in order to fully mitigate risks; The service proposed use of third parties, subcontractors, or partners to support provider’s the outsourced activities; The service ability to respond to service disruptions; provider’s Key service provider personnel that would be assigned to support the financial institution; The service ability to comply with appropriate federal and state laws. In provider’s particular, ensure management has assessed the service ability to comply with providers’ federal laws (including GLBA and BSA); and Country, state, or local risk. Verify that the contract appropriately addresses: Scope of services; Performance standards; Pricing;
Contractual protections against liability. Assess the extent to which the institution Reviews the financial stability of the technology service provider; Analyzes the service provider’s audited financial statements and annual reports; Assesses the service provider’s length of operation and market share; Considers the size of the institution’s contract in relation to the size of the service provider; Reviews the service provider’s level of technological expenditures to ensure on-going support; and Assesses the impact of economic, political, or environmental risk on the service provider’s financial stability. Evaluate whether the institution’s due diligence considers the following: References from current users or user groups about a particular technology service provider’s reputation and performance; The service provider’s experience and ability in the industry; The service provider’s experience and ability in dealing with situations similar to the institution’s environment and operations; The cost for additional system and data conversions or interfaces presented by the various technology service providers; Shortcomings in the service provider’s expertise that the institution would need to supplement in order to fully mitigate risks; The service provider’s proposed use of third parties, subcontractors, or partners to support the outsourced activities; The service provider’s ability to respond to service disruptions; Key service provider personnel that would be assigned to support the financial institution; The service provider’s ability to comply with appropriate federal and state laws. In particular, ensure management has assessed the service providers’ ability to comply with federal laws (including GLBA and BSA); and Country, state, or local risk. Verify that the contract appropriately addresses: Scope of services; Performance standards; Pricing;
ffiec_itworkprogram_retailpaymentsystems.docx