To operationalize the Outsourced Service Provider Assessment (OSPAR) framework of the Monetary Authority of Singapore (MAS), organizations need to implement several key controls across different domains. Here are the necessary controls:
Entity Level Controls
1. Control Environment: Establish a strong control environment with clear governance structures and accountability.
2. Risk Assessment: Conduct regular risk assessments to identify and evaluate risks associated with outsourced services.
3. Information and Communication: Ensure effective communication channels for reporting and managing risks.
4. Monitoring: Implement continuous monitoring of outsourced services to detect and address issues promptly.
Information Security Policies
1. Logical Security: Implement access controls, authentication mechanisms, and encryption to protect data.
2. Physical Security: Secure physical access to data centers and other critical infrastructure.
3. Change Management: Establish processes for managing changes to IT systems and services.
4. Incident Management: Develop and maintain an incident response plan to address security breaches and incidents.
5. Backup and Disaster Recovery: Implement backup solutions and disaster recovery plans to ensure data availability.
6. Network and Security Management: Monitor and manage network traffic to prevent unauthorized access and attacks.
7. Security Incident Response: Establish procedures for responding to security incidents and mitigating their impact.
8. System Vulnerability Assessments: Regularly assess systems for vulnerabilities and apply necessary patches and updates.
9. Technology Refresh Management: Plan for the timely replacement and upgrading of technology infrastructure.
10. Data Security: Protect sensitive data through encryption, access controls, and data classification.
11. Cryptography: Use cryptographic techniques to secure data in transit and at rest.
12. Software Application Development and Management: Implement secure coding practices and manage software applications effectively.
Service Level Controls
1. Setting up New Clients/Processes: Establish procedures for onboarding new clients and processes.
2. Authorizing and Processing Transactions: Implement controls for authorizing and processing transactions accurately.
3. Maintaining Records: Ensure proper maintenance and retention of records.
4. Safeguarding Assets: Protect physical and digital assets from theft and unauthorized access.
5. Service Reporting and Monitoring: Provide regular reports and monitor service performance.
6. Business Continuity Management: Develop and maintain business continuity plans to ensure service continuity during disruptions.
These controls help ensure that outsourced service providers meet the required standards and provide services with the same level of governance, risk management, and control as if they were managed internally by the financial institutions.