![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
CSI and BITS cut outsource risk
Collaborative Software Initiative joins the BITS Shared Assessments Program to launch a web application to facilitate compliance
PORTLAND, OREGON – The Collaborative Software Initiative (CSI) has licensed the content of the BITS Shared Assessments Program to develop a product that facilitates compliance for outsourcing investment banks and their vendors.
CSI aims to use the new licence to create an open-source, front-end data-gathering application to enable efficient use of the shared assessments vendor questionnaire.
The application is designed to reduce risks over protecting financial data in the hands of vendors while freeing up budgets and resources for competitive operations elsewhere.
“A number of banks participated in the programme and documented a technical specification for vendor assessment. They then approached CSI to design and develop the questionnaire, which could be deployed in multiple environments – Windows, Linux, Unix – with technical support provided by CSI,” says Stuart Cohen, chief executive officer of CSI.
The Shared Assessments Program was created by BITS, a non-profit industry consortium whose members include Citibank, Morgan Stanley, JP Morgan and Goldman Sachs. Cohen stresses that collaboration with the large Wall Street firms as well as regional banks already used to working together in the same trade associations leads to lower development and support costs, and provides broad applicability for industry standards.
“The bigger banks will have to develop and implement sooner, but we anticipate them all using the same questionnaire because, from the regulators’ standpoint, if the big banks are using a broader set of questions for compliance, they would expect the regional banks to do that as well,” said Cohen.
All financial institutions require vendors to complete assessment questionnaires, and CSI hopes to provide across-the-board efficiency by allowing vendors to complete the same questionnaires and submit them to a range of financial institutions.
“The goal of the Shared Assessments Program is to be the industry’s de facto standard,” adds Cohen. “CSI’s XML format and the Regulation Q application provide a substantial productivity gain both to outsourcing vendors and financial institutions, versus working through a static spreadsheet format for the SIG.”
The questionnaire is designed to operate independently or can be integrated into existing operational risk management systems, with an interchange mechanism offered to streamline participation in the programme.
“Our intention is to begin beta tests with banks and vendors in November,” said Cohen. “Some of the largest banks will have 3,000 – 5,000 questionnaires submitted to them over the next few years. Additionally, the major vendors will have to submit this questionnaire hundreds of times a year.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Technology
Dismantling the zeal and the hype: the real GenAI use cases in risk management
Chartis explores the advantages and drawbacks of GenAI applications in risk management – firmly within the well-established and continuously evolving AI landscape
Chartis RiskTech100® 2024
The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…
T+1: complacency before the storm?
This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms
Empowering risk management with AI
This webinar explores how artificial intelligence (AI) can strip out the overheads and effort of rapidly modelling, monitoring and mitigating risk
Core-Payments for business leaders: why real-time access to payment data is key to long‑term business success
Business leaders require easy access to timely, reliable and complete information across post-trade processes. Aside from the usual requirements of senior managers to optimise for risk, revenues and costs, they increasingly need to demonstrate to their…
Risk applications and the cloud: driving better value and performance from key risk management architecture
Today's financial services organisations are increasingly looking to move their financial risk management applications to the cloud. But, according to a recent survey by Risk.net and SS&C Algorithmics, many risk professionals believe there is room for…
Machine learning models: the validation challenge
Machine learning models are seeing increasing demand across the capital markets spectrum. But how can firms improve their chances of gaining internal and regulatory approval for these type of models?