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PRESS RELEASE

For Immediate Release
Contact: Ann Patterson, (202) 589-2448
Keosha Burns, (202) 589-2427

BITS Publishes Paper on Managing Subcontractor Relationships

Washington, D.C. – July 1, 2008 – BITS released a white paper on managing vendor subcontractor relationships. Key Considerations for Managing Subcontractors examines the risks for financial institutions as their primary vendors increasingly distribute services to subcontractors. The paper provides guidelines that help financial institutions evaluate the processes associated with the use of subcontractors. It discusses regulatory requirements; policy considerations, due diligence, contracting considerations, subcontractor approval, and ongoing monitoring.

As outsourcing practices mature and develop throughout the industry, the use of subcontractors has increased. “Financial institutions must increasingly manage risks associated with vendors with whom they have no direct relationship,” stated Leigh Williams, President of BITS. “This paper helps outline some of the key areas that may be incorporated into a vendor management program.” The paper was developed under the direction and guidance of the BITS Vendor Management Steering Committee and other BITS member companies.

The white paper is available at http://www.bitsinfo.org/p_publications.html#VM.

The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. Roundtable member companies provide fuel for America’s economic engine, accounting directly for $65.8 trillion in managed assets, $1 trillion in revenue, and 2.4 million jobs. BITS is the technology division of the Roundtable, leveraging intellectual capital to address issues at the intersection of financial services, operations and technology. BITS focuses on strategic issues where industry cooperation serves the public good, such as critical infrastructure protection, fraud prevention, and the safety of financial services.

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