[OR] [AmB] [E1] [C5] Identifying Critical Business Services

Operational Resilience Framework: A Case Study of AmBank Malaysia

Chapter 5

Critical Business Services (CBS) of AmBank Malaysia in Implementing an Operational Resilience Program

Operational resilience has become a key focus for financial institutions worldwide, ensuring they can withstand, adapt to, and recover from disruptions.

In Malaysia, AmBank Group—one of the country’s leading financial institutions—must identify and prioritize its critical business services (CBS) as part of its operational resilience framework.

This ensures that essential services remain available to customers, regulators, and the financial ecosystem, even during crises.

Defining Critical Business Services in the AmBank Context

Critical business services are those activities that, if disrupted, could significantly impact customers, financial stability, or the bank’s safety and soundness.

These services require a robust resilience strategy to minimize operational risks such as cyber threats, system failures, and external shocks.

For AmBank Malaysia, critical business services can be categorised into key areas that support banking, payments, lending, wealth management, and corporate financial services.

Key Critical Business Services at AmBank Malaysia

Retail and Digital Banking Services

Retail banking serves a large customer base, providing essential financial services such as:

• Account management (savings, current, and fixed deposits)
• Digital banking and mobile banking (AmOnline)
• Fund transfers and bill payments
• Automated Teller Machines (ATMs) and cash deposit services

A failure in these services could prevent individuals from accessing their funds, making purchases, or completing daily transactions, leading to reputational and financial risks for AmBank.

Payment Processing and Settlement Services

As a key player in Malaysia’s financial ecosystem, AmBank facilitates payment services, including:

• Interbank fund transfers (IBG, DuitNow, JomPAY, FPX, SWIFT payments)
• Credit and debit card transactions
• Real-time settlement services

Any disruption in payment processing could affect businesses, individuals, and financial institutions that rely on AmBank’s infrastructure to process transactions efficiently.

Corporate and SME Banking Services

AmBank supports Malaysian businesses through:

• Corporate loans and SME financing
• Trade finance (letters of credit, guarantees, supply chain finance)
• Business account management

Uninterrupted access to banking services is crucial for SMEs and large corporations to ensure cash flow continuity, payroll processing, and supply chain stability.

Treasury and Capital Markets Operations

AmBank provides financial market services, including:

• Foreign exchange and money market trading
• Government securities and bond trading
• Risk hedging solutions

Operational disruptions in the treasury and capital markets unit could lead to financial losses, regulatory breaches, and systemic risks in Malaysia’s financial markets.

Investment and Wealth Management Services

AmBank’s wealth management division provides:

• Unit trust investments and private banking services
• Stockbroking and asset management
• Insurance and takaful products

Ensuring resilience in these services is critical to maintaining investor confidence and regulatory compliance in Malaysia’s financial sector.

Loan and Credit Services

The bank’s lending operations include:

• Personal loans, mortgages, and auto financing
• Credit risk assessment and loan approval processing
• Loan repayment and restructuring services

Disruptions in credit services could affect borrowers’ financial commitments, leading to customer dissatisfaction and economic instability.

Regulatory Compliance and Reporting Services

AmBank must comply with Bank Negara Malaysia (BNM) and other regulatory requirements, including:

• Risk and financial reporting
• Anti-money laundering (AML) and fraud prevention
• Data protection and cybersecurity measures

A failure in regulatory compliance services could lead to penalties, reputational damage, and legal consequences.

Embedding Operational Resilience in AmBank’s Critical Business Services

To strengthen resilience, AmBank Malaysia must integrate operational resilience principles across its critical business services by:

Identifying Key Risks and Dependencies

• Mapping out third-party dependencies (e.g., fintech partnerships, cloud services, and payment networks).
• Assessing risks from cyber threats, IT failures, and supply chain disruptions.

Setting Impact Tolerances

•  Defining acceptable downtime limits for each CBS to prevent widespread disruption.
• Aligning impact tolerances with regulatory expectations under BNM’s operational resilience guidelines.

Implementing Business Continuity and Disaster Recovery Plans

• Establishing redundancy in IT infrastructure to protect against system failures.
• Ensuring backup power supply for branches and ATMs.
• Conducting regular resilience testing and crisis simulation exercises.

Enhancing Cybersecurity and Fraud Prevention

• Deploying real-time threat monitoring systems to detect cyberattacks.
• Strengthening multi-factor authentication (MFA) and biometric security for digital banking.

Strengthening Third-Party Risk Management

• Evaluating the resilience of cloud service providers, fintech partners, and outsourcing vendors.
• Developing contingency plans to address third-party service failures.

Continuous Monitoring and Regulatory Compliance

• Aligning with BNM’s Risk Management in Technology (RMiT) guidelines.
• Ensuring compliance with ISO 22301 Business Continuity Management standards.
• Conducting independent audits and risk assessments.

Summing Up … 

AmBank Malaysia’s operational resilience framework must prioritize its critical business services to maintain financial stability and customer trust.

By identifying key dependencies, setting impact tolerances, and implementing robust recovery plans, AmBank can mitigate disruptions and ensure continuity in its core financial services.

A well-structured resilience program enhances AmBank’s regulatory compliance and strengthens its competitive edge in an evolving financial landscape.

Operational Resilience Framework: A Case Study of AmBank Malaysia
Understanding Your Organisation: AmBank

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