For purposes of C4-4.3.1, a contract is ‘material’ where, if it failed in any way, it would pose significant risks to the on-going operations of a licensee, its reputation and/or the quality of service provided to its clients. For instance, the outsourcing of all or a substantial part of functions such as financial control, risk management, internal audit would be considered “material”. Management should carefully consider whether a proposed outsourcing arrangement falls under this Module’s definition of “material”. If in doubt, management should consult with the CBB.