PRA issues Supervisory Statement (SS2/21) 'Outsourcing and third party risk'

On 29 March, following an extended 16 month consultation period (CP30/19), the Prudential Regulatory Authority (PRA) published its final Policy (PS7/21) and Supervisory Statements (SS2/21) on outsourcing and third party risk management, alongside final policy and supervisory statements on operational resilience. The SS seeks to strengthen and modernise the prudential framework for outsourcing and third party risk management by:

• facilitate greater resilience and adoption of the cloud and other new technologies;
• complement the policy proposals on operational resilience; and
  
• implement the EBA Outsourcing Guidelines and relevant sections of the EBA Guidelines on ICT and security risk management.
  

Download this Hot Topic to see our summary of key areas and next steps for PRA regulated firms.