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Optimising Outsourcing Governance with Navigator, by Nexus Assurance
Introduction
Managing outsourcing governance in the complex and highly regulated fund services sector poses unique challenges, especially for large global firms with extensive outsourcing arrangements. These firms must navigate a “spider web” of outsourcing relationships while adhering to local regulatory requirements for entity-level outsourcing registers. This case study examines why Navigator, a digital governance and control platform by Nexus Assurance, is being used to transform outsourcing governance for a leading global fund services firm, enabling centralisation of outsourcing arrangements and enhancing local entity oversight and compliance.
Challenge
A large global fund services firm faced significant challenges in managing its extensive and complex web of outsourcing arrangements. Each local entity within the firm was required to maintain its own outsourcing register in compliance with local regulatory standards, leading to a fragmented and inefficient governance process. This setup made it difficult to maintain a unified view of outsourcing risks and compliance, creating potential for oversight gaps and regulatory breaches.
![Board Room](https://nexusassurance.com/wp-content/uploads/2024/02/Board-room-4-1024x579.webp)
Solution
Navigator by Nexus Assurance provided an innovative solution to these challenges. The platform enables the firm to centralise all outsourcing arrangements securely, while still allowing local entities to maintain ownership and oversight of their specific activities. This approach not only streamlined governance processes but also ensured adherence to local regulatory requirements.
Key implementations included:
Centralised Outsourcing Registers: Navigator allows the firm to bring together all outsourcing registers on a single platform, offering a global overview while retaining detailed insights at the local entity level.
Localised Governance and Compliance: Despite the centralisation, Navigator facilitates local entities in managing their specific regulatory and governance requirements, ensuring that local practices are not only preserved but optimised.
Enhanced Oversight and Reporting: The platform’s robust reporting tools and dashboards provide both global and local views of compliance status, significantly simplifying the oversight and reporting process.
Benefits
Several key benefits are derived from implementing Navigator, including:
Unified Compliance Framework: Centralisation of outsourcing registers provided a unified framework for managing compliance across global and local levels.
Streamlined Governance Processes: The ability to manage and track governance tasks centrally, while allowing for local customisation, significantly improved operational efficiency.
Increased Transparency and Control: Enhanced oversight capabilities ensured that the firm could demonstrate comprehensive ownership and control over all outsourced functions.
Conclusion
The adoption of Navigator will transform a firm’s approach to outsourcing governance. Centralisation coupled with localised activity management will enable a firm to navigate the complexities of global and local regulatory compliance with greater ease and effectiveness.
For global fund services firms grappling with the complexities of outsourcing governance, Navigator, by Nexus Assurance offers a powerful solution that balances the need for centralised oversight with the necessity of local compliance and control. This case study of a leading global fund services firm showcases the transformative potential of digital governance platform in achieving operational efficiency, regulatory compliance, and enhanced risk management across the intricate landscape of global outsourcing arrangements.