China Asks Banks, Insurers to Prevent Risks From IT Outsourcing

Banks and insurance companies are not allowed to outsource information technology functions involved in strategic management, internal audit and other core areas, according to rules issued by China Banking and Insurance Regulatory Commission.

• Banks and insurers should fully evaluate business environment of countries or regions where IT outsourcing service providers are located
• Any IT outsourcing involving cross-border data storage, processing and analysis should comply with Chinese rules and regulations
• Banks and insurers should include IT outsourcing risks into comprehensive risk management system

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Lulu Shen in Shanghai at lshen37@bloomberg.net

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