Last year, Niklas Nyberg of SEB shared the background to his bank’s custody collaboration with BBH. This year he brought his team to discuss the continuous running of it – starting from getting the governance right.
Strategic opportunities for collaborations and outsourcing across post-trade processes have opened up quickly in the last decade. But it is when you get down to the how questions that it gets difficult – and really interesting.
The panel consisted of …
Niklas Nyberg, Head of Institutional Global Custody, SEB
Catharina Buresten, Head of Risk Management, Investor Services, SEB
Susanne Öhrn, Information Security & Cyber Risk Manager, SEB
Martin Axelsson, Senior Legal Counsel, SEB
“For our critical and important outsourcings, we always secure that we have a outsourcing owner and a contract manager. Then we set a governance where we see that we implement a strategical, a tactical and an operational committee, where we have representatives both from ourselves and our outsourcing provider, in order to monitor and follow up and discuss the outsourcing,” says Catharina Buresten.
“In addition to that, we always also set clear key control objectives and clear key performance indicators. We follow up and monitor these of course, we run yearly BCP tests with our outsourcing providers.”
Conference moderator Göran Fors played something of a double role in the session – having been deeply involved with the issue within SEB since decades.
“I think when we did the evaluation 10 years ago, or five years ago when we entered into the agreement, we didn’t really know what it would mean for Martin, Catharina and Susanne or ourselves doing the monitoring,” Göran Fors confessed.
“If we’d known that then, we probably would have acted a bit differently. So for anyone who is looking into doing a good outsourcing, you have to know you probably need do a much more thorough due diligence of the provider long before you enter into it.”
• PostTrade 360° Stockholm 2021 took place on 25–26 March. News around the event is gathered here.
• Find the 44-page event magazine here.
• By the way … are we connected on LinkedIn already, among the 1,600 post-trade pros who are? Follow us here.