IT Examiner School, Providence, RI

Requirements Definition

• Business Requirements: - Identify the functions or activities to be outsourced - Assess the risk of outsourcing those functions or activities - Establish a baseline from which appropriate control measures can be identified • These requirements provide a basis for an understanding between the financial institution and the service provider as to what the risks are and how they will be managed and controlled.

Request for Proposal (RFP)

• A Request for Proposal is a tool that can be used to facilitate the selection of a qualified service provider. The RFP can help a financial institution identify the best service provider(s) for their specific requirements by inviting competition, as service providers respond with a solution or combination of solutions, and the institution selects the most viable provider.