FFIEC IT Examination Handbook
Outsourcing Technology Services booklet (June 2004) – FFIEC IT Examination Handbook

FFIEC IT Examination Handbook OTS-16: Financial Condition of Service Providers (Outsourcing Technology Services)

What does OTS-16 require?

The institution determines its providers' financial viability at least annually, more often when a provider's condition is declining, through analysis of the annual financial statements supplemented by independent audit reports and public media, reports the results to the board or a committee, implements its contingency plan when a provider's condition is unstable or deteriorating, treats a provider's failure to supply financial data as a red flag, and prepares for the alternatives a provider's bankruptcy would force, from paying off creditors and hiring specialists to run the centre to in-house processing or transfer to another provider.

Maintained by Gerard BlokdykControl text last updated

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