Supplier governance has regard to proportionality, ensuring the oversight
is consistent with the Supplier risk profile, the nature, scale and
complexity of their activities, the potential risks of such an engagement,
the criticality or importance of the outsourced services and the potential
impact of the outsourcing on the continuity of activities.
Supplier governance is designed to encourage optimal performance,
compliance, and risk mitigation. Governance is a key business discipline
which aligns business stakeholders and Suppliers and sets out clear
accountability, ownership, and responsibility.
The governance model defines the expected oversight and is a riskbased model determined by the Supplier segmentation. For
example, a
tactical Supplier would only require 'light touch' oversight whereas a
strategic Supplier would require more intensive oversight.
Standard 3.0