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A Layered Approach to Due Diligence for Investment Firms (Webinar Replay)

By Amisha Shah | Thursday, July 25th, 2019
More than ever, firm’s in today’s alternative investment management landscape are drawn to outsourcing. Partnering with a trusted expert to manage complex technology and operational requirements has enabled businesses to reach new heights. 

While the benefits of outsourcing are vast, it comes with a range of considerations. Hence firms are encouraged to carry out thorough due diligence processes to reap the full benefits of outsourcing.
In a recent webinar, experts from Eze Castle Integration shared guidance on a layered approach to due diligence. Today’s blog article will roundup key takeaways from the discussion. The webinar replay is also available to those who want to listen in on the full discussion. 

Effective Due Diligence and Oversight

Here are some factors to consider for effective due diligence and oversight:

•    Product/Service Information - does this match your needs?
•    Company Information – who are you looking to work with?
•    Procedures, policies, standards and controls adopted by the supplier – are these in line with your own?
•    Third parties – does the supplier you’re considering outsource? If so, to who?

Key Points to Consider:
•    Compatibility
•    Supplier expertise
•    Contractual obligations

Questions You Should Be Asking

We recommend you ask questions around the following areas to potential vendors/suppliers:
•    Compliance
•    Security controls
•    Alignment to recovery strategies
•    Certifications
•    Audit reports
•    Attestations

Assessing Your Findings

Having gathered the information you need to shortlist suppliers, firms are encouraged to take the three steps below to assess findings carefully.

1.    Risk assessment
2.    Assess any issues
3.    Risk treatment

Red Flags to Look Out for When Assessing Suppliers

•    Deep discounts
•    Over agreeing
•    Data storage – GDPR/MiFID
•    Examine any exclusions in service level agreements (SLAs)
•    Consider the quality of people assigned to your organisation

Most of all, ensure that the outsourcing team possesses industry expertise!

Watch the full 35-min replay for a more detailed outlook on the topic.
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