Improve Your Risk Evaluation and Control #6 – outsourcing

Identifying new risks and additional controls can provide visible and evident benefits to the organization but can initially seem daunting.  By following these tips, you can expedite this step and grow your network while enhancing your organization’s defences.

Tip #6 Examine risks from outsourced activities

Globalization can provide cost savings but can also expose your organization to many hidden risks.  Do not overlook the threats to overseas outsourced services or key suppliers.  Some categories of risk such as war, terrorism and political risks are more frequent in some areas.  You should be aware of these risks and monitor them.

Ideally, you should review the business continuity plan for their facility and obtain a copy of their risk assessment before the contract is signed.  Monitor their BC program and ensure that the plans are being exercised.

Return tomorrow for our next tip…

(For more information on DRI’s professional practices please read Professional Practice One – Program Initiation and Management DRII Professional Practices  June 1, 2012 Version 1)

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