In 2021, an internal systemic Bank launched a holistic risk assessment of its Depositary Bank (DB) business.
As part of this review, Avantage Reply performed a review of DB exposure to risks related to outsourcing arrangements including the effectiveness of controls to mitigate associated risks.
The assessment involved reviewing the processes, risks and controls related to the outsourcing activities and led to four critical recommandations. As a result, our client needed assistance with the implementation of the remediation actions:
Following a holistic review of its control framework, the Bank had to remediate its internal control shortfalls, lower its residual risk, and ensure its compliance with the new outsourcing regulation.
In order to successfully perform the assessment and to execute the remediation actions, Avantage Reply had to mobilise, within a short period of time, the resources with the specific knowledge and experience.
Furthermore, the internal control framework is considered a critical and transversal part of financial institutions; its update requires an approval from multiple stakeholders.
The following 4-phases approach has been followed to deliver the solution: