The characteristic of an Outsourcer’s services, products, or activities being out of compliance and/or adherence due to the failure of a service provider to comply with applicable laws and regulations.
Retrieved and adapted from Guidance on Managing Outsourcing Risk. Division of Banking Supervision and Regulation Division of Consumer and Community Affairs Board of Governors of the Federal Reserve System. (2018). https://www.federalreserve.gov/supervisionreg/srletters/sr1319a1.pdf