11. The Banks need to focus on the risk management process of identifying, measuring, monitoring, and controlling the risks associated with outsourcing technology services. • Ability to evaluate and oversee outsourcing relationships. • Importance and criticality of the services to the financial institution. • Defined requirements for the outsourced activity. • Necessary controls and reporting processes. • Contractual obligations and requirements for the service provider. • Objectives and service provider performance. • Regulatory requirements and guidance for the business lines affected and technologies used. Source: FDIC, www.fdic.gov/news/news/financial/2000/fil0081.pdf Risk Management of Outsourced Technology Services