|Following consultation with industry,
MAS is reviewing the proposed guidelines on Sound Risk Management
Practices and incorporating industry feedback, where appropriate.
The final guidelines are expected be issued in the third quarter
of 2004. In addition, we released a consultation paper on outsourcing
guidelines in April 2004, setting out our expectations for financial
institutions who entered into outsourcing arrangements with
service providers. Based on international good practice, the
guidelines focus on material outsourcing. They make clear that
we expect financial institutions to establish risk management
practices commensurate with their risk appetites. The guidelines
complement the Internet Banking Technology Risk Management guidelines,
released in June 2003, which address outsourcing of IT processing
functions and operations.