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Explanation:
Financial institutions should review the financial condition of the service provider and its closely-related affiliates. The financial review may include:
Q.2329 A bank based in Palermo, Italy, is considering outsourcing its IT services and is preparing a review of financial condition of IAM Systems – the most popular service provider in town. Which of the following would not form part of the financial review process?
A
The adequacy of the service provider's insurance coverage.
B
The adequacy of the service provider's review of the financial condition of any subcontractors.
C
The potential financial impact of the bank’s business on the provider.
D
The potential impact of the provider’s past clients on the bank’s financial condition.
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