1. Setting Standards for Outsourcing Vivienne Sullivan 020 7469 1114 viv.sullivan@navigantconsulting.co.uk

2. Setting Standards for Outsourcing  Benchmarking  Role of the Financial Services Authority (FSA)  Monitoring Supplier Performance - Key Areas

3. Role of the FSA  Financial Services and Markets Act 2000  All mortgage and general insurance firms must comply  Deadline for compliance is January 14 th 2005  Applications to be in 6 months prior  FSA’s risk based approach

4. Role of the FSA - Outsourcing OOutsourcing in the London Market IIdentified as a significant risk PProfessional Advisers And the FSA sets the parameters ………… Connecting clients with solutions

5. Benchmarking  Establish clear, achievable objectives for benchmarking  Make benchmarking a philosophy, not an exercise  Adopt an incremental benchmarking approach to help realign performance to strategic objectives  Go for internal and external comparisons  Consider which metrics make for the most valid comparison of service performance and stick to them ‘The tool for assessing the effectiveness and efficiency of service provision to protect the investment of the sourcing strategy’

6.  Policy and Accountability  Selection of Supplier  Agreement with Supplier  Monitoring  Contingency Sharpening your organization’s efficiency Monitoring Supplier Performance - Key Areas

7.  What is the firms policy on the use of Outsourcing and third party providers?  Who is responsible for managing this relationship between both firms? Solutions to build a sustainable future Policy and Accountability

8. Selection of Supplier How will this be assessed?  References  Benchmarking Navigating pathways to success Which criteria should be employed when assessing the appropriateness of a supplier?  Competence  Integrity  Financial Stability

9. Ensure that the terms of the agreement are clear to both parties. Agreement with Suppliers  Provide an appropriate SLA  Perform periodic reviews  Determine how best to use auditors and their findings  Make the relevant information accessible to the FSA  Establish adequate reporting lines

10. Monitoring Meeting uncertainty with preparation  How will you ensure that the service provided continues to meet goals and objectives?  How will you ensure that effective systems and controls are maintained? oReviews oAudits oRisk Assessment Forms  How efficiently are your processes and controls adjusted to reflect new or changing risks or operational deficiencies?  To what degree are clear and measurable objectives set for your staff?  To what extent do you receive/request timely, relevant and reliable reports on progress against your business objectives and their related risks?

11. Contingency  The contract is terminated?  The service can no longer be provided? Innovative solutions for pressing needs Avoid Over-reliance How adequate are the company’s plans to continue operations if:

12. Summary  Benchmarking  FSA Regulation  Monitoring Supplier Performance

13. Presentation