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| Outsourcing Risk |
The decision to outsource is
associated with multiple types of risks, including risks associated with including
labor and other process costs. In some cases, risk may not be significant when
considered individually; however, but when they interact with other risks areas
they may be excessive in the aggregate. Thus, in the end, management’s decision
to outsource to reduce certain risk exposures may ultimately increase the
entity’s total portfolio of the bank.
