Third-party risks are a first priority for central banks

Outsourcing

Third-party service providers are increasingly ubiquitous in financial services. Almost all parties strive to follow the business school mantra: to outsource, either domestically or internationally, tasks outside of an institution’s core competency – even central banks.

Some areas, such as electricity supply, have been outsourced for a long time. But, in an increasingly digitised world, outsourcing now includes financial risk, treasury, trading and accounting technology, payments systems, cloud

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