Does Outsourcing Reduce Op Risk?

Rather than reducing operational risk by outsourcing certain functions, a firm could -- in doing so -- in fact be increasing its op risk. The matter hinges, as is so often the case, on the quality of management. Rick Harris of the Federal Reserve Bank of Chicago offers advice on how to minimise op risk exposure when using external staff

Financial firms of all sizes are increasingly using outside organisations to provide supporting technology and human resources as the variety and complexity of