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What Contingency Planning should you demand as part of Outsourcing Contracts?

What Contingency Planning should you demand as part of Outsourcing Contracts?. Nick Simms Director, Cornwood Risk Management. 3 TYPES OF DISRUPTION. Supply Supplier Our own. 4 TYPES OF CONTINGENCY. Prevention Detection Escalation Correction. SUPPLY DISRUPTION - CAUSES. Disaster

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What Contingency Planning should you demand as part of Outsourcing Contracts?

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  1. What Contingency Planning should youdemand as part of Outsourcing Contracts? Nick SimmsDirector, Cornwood Risk Management

  2. 3 TYPES OF DISRUPTION • Supply • Supplier • Our own

  3. 4 TYPES OF CONTINGENCY • Prevention • Detection • Escalation • Correction

  4. SUPPLY DISRUPTION - CAUSES • Disaster • System failure • Security breach • Data corruption • Transmission failure • People • 3rd party failure

  5. CONTINGENCY • Remove Force majeure clauses • Agree Service Levels and responsibilities • Require supplier to assess and manage risk • Audit its own suppliers • Succession planning • Tested back-ups • Tested recovery plans • Agree Triage plan • Understand where you fit in their priorities • Document and test internal workarounds • Data reformatting • Agree escalation plan

  6. SUPPLIER DISRUPTION - CAUSES • Bankruptcy • Closed by courts • Withdrawal from market

  7. CONTINGENCY • Conduct credit checking • Take up references • Review supplier news regularly • Ensure constant dialogue • Develop plans for bringing service in-house • Identify alternative supplier (s)

  8. OUR DISRUPTION - CAUSES • Disaster • System failure • Security breach • Receipt failure

  9. CONTINGENCY • Ensure supplier can redirect service • Test supplier’s ability to provide additional services • Include on-site supplier staff in evacuation plan • Agree Communication plan • Outsourcer’s management • Outsourcing staff working on-site

  10. SUMMARY • Outsourcers are an integral part of your business • Ensure you are managing your risk and ensure that your suppliers are managing it too.

  11. CORNWOOD CONSULTING • Provides Business Continuity and Operational Risk consultancy and training services primarily to Investment Banks and their support community

  12. CONTACT DETAILS • Nick Simms Cornwood Risk Management Ltd 14 Greenhalgh Walk London N2 0DJ Tel: 020 8731 6510 Fax: 020 8731 6511 E-mail: nicksimms@cornwood.co.uk Internet: www.cornwood.co.uk

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