The Investment Association has updated its outsourcing working group (OWG) report on asset managers' outsourcing arrangements, which the OWG published in December 2013. The updated version includes a new addendum, the key aim of which is to provide asset managers with further considerations as to how they could gain comfort regarding their oversight obligations for outsourced functions and services. In the report, the OWG identified four key principles for oversight: know your outsourcing (KYO), risk based assessment (RBA), ownership at a senior level and governance framework. In particular, the addendum focuses on the second of these principles which highlights the importance of RBA and contains considerations that could be included in an RBA. This focus is in recognition of the FCA's original intent that asset managers should find practical solutions that are viable, robust and realistic.