1. Purpose
The purpose of this policy is to define the principles and procedures for managing risks associated with outsourcing services to third-party providers, ensuring that Bayarcash maintains operational, regulatory, and information security standards.
2. Scope
This policy applies to:
- All third-party service providers engaged by Bayarcash, including IT vendors, cloud service providers, payment processors, and other outsourced business services.
- All departments and employees responsible for selecting, managing, and monitoring outsourced services.
3. Policy Statement
Bayarcash is committed to:
- Ensuring that all outsourced services do not compromise business operations, data security, or regulatory compliance.
- Conducting due diligence and risk assessment before engaging any third-party service provider.
- Monitoring and reviewing outsourced activities on an ongoing basis to mitigate potential risks.
- Maintaining accountability for outsourced functions, even when the activity is delegated to a third party.
4. Risk Assessment & Due Diligence
Before engaging a service provider, Bayarcash will:
- Assess the financial stability, reputation, and reliability of the provider.
- Review the provider’s security controls, compliance certifications, and data protection measures.
- Evaluate potential operational, legal, regulatory, and reputational risks.
- Include contractual obligations that ensure compliance with Bayarcash’s policies and relevant regulations.
5. Contractual Requirements
All outsourcing agreements must include:
- Clear definition of services, roles, and responsibilities.
- Data security and confidentiality requirements.
- Regulatory compliance obligations.
- Right to audit and monitor provider performance.
- Contingency and exit strategies to ensure business continuity.
6. Ongoing Monitoring & Review
Bayarcash will:
- Conduct periodic reviews of provider performance, risk, and compliance.
- Monitor service-level agreements (SLAs) to ensure commitments are met.
- Require prompt reporting of any incidents, breaches, or changes in the provider’s operational environment.
- Adjust or terminate contracts if the provider fails to meet required standards.
7. Roles & Responsibilities
| Role | Responsibility |
|---|---|
| Executive Management | Approve outsourcing decisions and allocate resources. |
| Compliance & Risk Team | Conduct due diligence, risk assessments, and ongoing monitoring. |
| Department Heads | Ensure operational alignment and compliance with policy. |
| Procurement & Vendor Management | Negotiate contracts with proper risk clauses. |
| IT & Security Team | Assess technical and cybersecurity controls of providers. |
8. Incident Management
- Third-party incidents impacting Bayarcash operations must be reported immediately to the Compliance & IT Security Teams.
- Bayarcash retains responsibility for resolving operational or security issues, even if they originate from a third-party service provider.
9. Record Keeping
- Maintain documentation of all risk assessments, due diligence reports, contracts, and ongoing monitoring activities.
- Records should be retained according to the Record Retention Policy.
10. Review & Policy Updates
This policy shall be reviewed at least annually or upon significant changes in outsourcing practices, regulatory requirements, or risk landscape.