Subject Title - INSETA

are addressed in the business-specific risk management models with specificreference to operational risk management.FSPs should ensure that they use resources, procedures and appropriatetechnological systems, that can be expected to reasonably eliminate the riskof clients, other providers and representatives suffering financial lossthrough: 86theftfraudother dishonest actspoor administrationnegligenceprofessional misconduct; orblameworthy oversights.The specific control objectives include that the internal control procedures ofa business must be structured to provide assurance that: 87the relevant business can be carried on in an orderly and efficientmannerfinancial and other information used or provided by the provider willbe reliable; andall applicable laws are complied with.8.8.2 Contingency planningOne of the questions in the compliance report 88 (which we discuss later whenlooking at the role of compliance officers) relates specifically to the existenceof business continuity planning in order to ensure that clients will be servicedif the business is terminated for any reason.The FSB feels strongly about the fact that FSPs must have adequatecontingency measures in place, especially where the FSP is a sole proprietor.This topic was discussed in the July 2008 edition of the FSB FAIS newsletter.The insert reads as follows:86 Section 11 of the General Code87 Section 12 of the General Code88 Question 8.9.2156 © INSETA - Section 1 12a