There are many good reasons to outsource, but outsourcing is not without risk, observed Krista Zipfel, director at ACA Global, at a recent National Society of Compliance Professionals seminar. The benefits include better use of internal resources and cost savings; scalability; access to expertise; and risk mitigation, especially through information security services, she said. Nevertheless, the responsibility and risk associated with outsourced functions remains with the firm that outsources them. Zipfel, along with Robin Freeman, CCO at LaSalle Investment Management Distributors, LLC, and J. Christopher Jackson, senior vice president and GC at Calamos Investments LLC, discussed the evolving regulatory requirements for outsourcing; key concerns associated with outsourcing; and the vendor selection and due diligence processes. This article synthesizes their insights. See “Amount of Value Outsourced Fund Administrators Confer to PE Sponsors and Criteria for Selecting Them” (Jan. 25, 2022); and “Features of a Robust Program for Onboarding Third Parties and Pitfalls to Avoid” (Dec. 14, 2021).