Although there are a lot of arguments which are pro CBS, there are alsosome risks in having a CBS. The main risks are on account of networkand server failures, which have to be clearly addressed while formulatinga business continuity plan (BCP). Since the entire data is available at thedata centre, a branch will get typically alienated and its operations getaffected. The whole banking operations get paralysed on account of a server failure or due to a network failure at the data centre.
The disasters and attrition of key IT personnel are next in the list. The CBS application software, although supposed to be highly parameterised, modular, scalable and flexible, often demands for a work-around or a business process reengineering (BPR).
Integration issues with third party solutions pop up while rolling out new products and services. The customisation part is another headache and banks later on realise that they have been customised to a corner! Ensuring the prompt and expert IT support from the 3 dimensions, viz., software, hardware and network and delivering the new products and services as per the business plan of the bank – these are the inevitable challenges in having a CBS model. To shoulder these risks and responsibilities, the bank should invariably have a well paid, dedicated
and loyal IT team in its rolls rather than an outsourced model and here comes the importance of an effective chief information officer.
Post a Comment