1. Nick Simms Director, Cornwood Risk Management
What Contingency Planning should you demand as part of Outsourcing Contracts?
Nick Simms Director, Cornwood Risk Management

2. 3 TYPES OF DISRUPTION
Supply
Supplier
Our own 3

3. 4 TYPES OF CONTINGENCY
Prevention
Detection
Escalation
Correction

4. SUPPLY DISRUPTION - CAUSES
Disaster
System failure
Security breach
Data corruption
Transmission failure
People
3rd party failure 3

5. CONTINGENCY Remove Force majeure clauses
Agree Service Levels and responsibilities
Require supplier to assess and manage risk
Audit its own suppliers
Succession planning
Tested back-ups
Tested recovery plans
Agree Triage plan
Understand where you fit in their priorities
Document and test internal workarounds
Data reformatting
Agree escalation plan 3

6. SUPPLIER DISRUPTION - CAUSES
Bankruptcy
Closed by courts
Withdrawal from market 3

7. CONTINGENCY Conduct credit checking Take up references
Review supplier news regularly
Ensure constant dialogue
Develop plans for bringing service in-house
Identify alternative supplier (s) 3

8. OUR DISRUPTION - CAUSES
Disaster
System failure
Security breach
Receipt failure 3

9. CONTINGENCY Ensure supplier can redirect service
Test supplier’s ability to provide additional services
Include on-site supplier staff in evacuation plan
Agree Communication plan
Outsourcer’s management
Outsourcing staff working on-site 3

10. SUMMARY Outsourcers are an integral part of your business
Ensure you are managing your risk and ensure that your suppliers are managing it too.

11. CORNWOOD CONSULTING
Provides Business Continuity and Operational Risk consultancy and training services primarily to Investment Banks and their support community

12. CONTACT DETAILS Nick Simms Cornwood Risk Management Ltd
14 Greenhalgh Walk
London N2 0DJ
Tel:
Fax:
Internet: