Outsourcing Risk
/ˈaʊtsɔrsɪŋ rɪsk/
Definitions
- (n.) The potential legal, financial, and operational hazards arising from delegating business processes or services to third parties.
The company conducted a thorough audit to assess its outsourcing risk before finalizing the vendor contract.
Forms
- outsourcing risk
- outsourcing risks
Related terms
See also
Commentary
When drafting outsourcing agreements, clearly allocating outsourcing risk between parties is essential to mitigate potential liabilities and ensure compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.