Principles and Practices for Orchestrating Digital Value Chains

In the previous post on this topic I wrote that the control framework created by compliance functions within financial institutions for outsource contracts are often inadequate and too expensive. The main reasons for these observations are that compliance officers often do not understand enough the scope and dynamics of the contract in order to create a lean but adequate compliance chart. By requiring all regulations to be in-scope they hope not to miss out on anything. Furthermore are compliance officers not trained well enough in translating an internal control framework into an external one. This often results in either requiring the vendor to copy the internal control framework of the bank (very expensive option as the bank does not leverage on the best practises of the vendor) or they just resort to letting the vendor sign a yearly ‘in contol’ statement (too simple as the vendor mostly does not know what it signs for). My third reason for the initial statement was that compliance...