Another place to control

You’re a bank, sending out monthly statements.  You outsource printing those statements.  Your vendor’s server is hacked.  Oops.  Do your clients care whether it was your server or not?

“Standard Chartered Data Stolen From Its Printer’s Servers,” Wall Street Journal, December 6, 2013 C3 http://on.wsj.com/IHJ3p4

Sure, you may have contractual provisions.  But do you check the security at third parties? Or ninth parties (the third parties of third parties)?  Is it cheaper to keep this inhouse?  Any reputation damage, either to you or to the printer, or both?

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Filed under Business Case, Controls, Internal controls, Risk, Third parties

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