Electronic banking: management of outsourcing risks

The article considers peculiarities of the application of electronic banking systems by credit institutions involving off-site institutions. The sources of typical banking risks associated with the use of provider services by a bank are examined. Examples of regulation of outsourcing in the banking and financial spheres in developed countries are presented and recommendations for credit institutions concerning provider selection and drawing up of a contract with it are provided. Also presented is a procedure for analysis of the sources of major banking risks related to the use of provider services.