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By Julie Hubbard, Group Vendor and Quality Assurance Director, OneSavings Bank
What are the documentation requirements for stressed exit scenarios?
The key requirements to aid documenting a detailed stressed exit approach and plan is to firstly fully understand the services provided by the third party. Agree what the required outcomes and success factors are and determine the relevant scenarios that may trigger a potential exit. Having some generic scenario examples to aid discussions with the Relationship Owner and key stakeholders is important to support the exercise and risk assessment which will aid discussions.
Understanding what potential scenarios or events could trigger an exit considering all current internal & external factors, the plausibility, probability and likelihood of the occurrence happening and questioning what we would do next as part of a roll play exercise to support formalising the exit planning steps and identification of the task owners, timelines and where applicable any associated costs.
Risk rating and understanding the probability of these events materialising and formalising a plan or plans to mitigate the scenarios and understanding the effectiveness of the plans is key. It is important to continually reassess the risk scenarios and ratings as situations and risks continually change.