In the evolving banking landscape, operational resilience is critical to ensure that essential banking services continue to function effectively, even during disruptions.
Establishing impact tolerances is a fundamental step in operational resilience, as it defines the maximum level of disruption a critical business service (CBS) can sustain before it affects customers, regulatory obligations, or the bank’s strategic objectives.
For CBS-3 Corporate & SME Banking, this exercise ensures that AmBank maintains service continuity for both corporate clients and SMEs, who rely heavily on financing, cash management, and trade services to operate smoothly.
This chapter focuses on setting appropriate impact tolerances for each sub-process (Sub-CBS) under Corporate & SME Banking. By defining thresholds for maximum tolerable downtime (MTD) and maximum tolerable data loss (MTDL), AmBank can identify vulnerabilities, prioritise mitigation strategies, and enhance overall resilience.
The table below presents the proposed impact tolerances, customer and regulatory considerations, current resilience status, and recommended actions for each Sub-CBS.
|
Sub-CBS Code |
Sub-CBS |
Maximum Tolerable Downtime (MTD) |
Maximum Tolerable Data Loss (MTDL) |
Customer Impact |
Regulatory Impact |
Impact Type |
Current Resilience Status |
Action Required |
|
3.1 |
Corporate Lending |
24 hrs |
1 hr |
Highly delayed disbursements may affect corporate operations |
High breaches in loan processing regulations |
Financial & Operational |
Moderate |
Enhance backup systems and automate loan approval workflows |
|
3.2 |
SME Financing & SME Amplify |
48 hrs |
4 hrs |
Medium – SMEs may face temporary cash flow issues |
Medium – compliance with SME financing guidelines |
Financial |
Moderate |
Implement redundant processing channels and real-time monitoring |
|
3.3 |
Cash Management & Deposits |
12 hrs |
30 mins |
High – impacts liquidity and payment operations |
High non-compliance with liquidity regulations |
Financial & Operational |
High |
Strengthen real-time reconciliation systems and disaster recovery drills |
|
3.4 |
Trade Finance & Supply Chain Solutions |
24 hrs |
1 hr |
High delays in letters of credit and trade settlements |
High – regulatory reporting for trade finance |
Operational |
Moderate |
Establish alternate processing platforms and cross-train staff |
|
3.5 |
Digital & Online Banking Platforms |
4 hrs |
15 mins |
High – affects corporate online transactions |
High regulatory expectations for digital banking uptime |
Operational & Cyber |
High |
Upgrade cloud infrastructure and implement high-availability systems |
|
3.6 |
Relationship & Advisory Services |
48 hrs |
4 hrs |
Medium – delays in advisory support may affect client satisfaction |
Low |
Customer Experience |
Moderate |
Automate advisory tools and enhance CRM system resilience |
|
3.7 |
Risk & Credit Assessment |
24 hrs |
1 hr |
High delays in risk evaluation could affect lending decisions |
High – regulatory reporting obligations |
Operational & Regulatory |
Moderate |
Implement AI-assisted credit scoring and maintain backup risk models |
|
3.8 |
Payments & Settlement Services |
4 hrs |
15 mins |
Very High – delayed payments impact client operations and liquidity |
High compliance with payment regulations |
Financial |
High |
Maintain real-time settlement platforms and redundant payment channels |
|
3.9 |
Regulatory Reporting & Compliance |
48 hrs |
0 |
High non-compliance penalties and reputational risk |
Very High – regulatory fines and sanctions |
Regulatory |
Moderate |
Automate reporting, maintain audit trails, and conduct compliance drills |
|
3.10 |
Customer Support & Service Operations |
12 hrs |
N/A |
High customer dissatisfaction and potential loss of clients |
Medium – must meet service-level agreements |
Customer Experience |
High |
Increase service redundancy and deploy multichannel support systems |
Establishing clear impact tolerances for CBS-3 Corporate & SME Banking enables AmBank to quantify its risk exposure and operational limits during disruptions.
By defining MTD, MTDL, and associated customer and regulatory impacts, the bank can prioritise mitigation strategies, allocate resources efficiently, and maintain confidence among clients and regulators.
This proactive approach ensures that critical banking services, from corporate lending to digital banking platforms, remain resilient under adverse conditions.
Continuous monitoring, testing, and improvement of these impact tolerances will allow AmBank to not only meet regulatory expectations but also uphold its commitment to uninterrupted, high-quality service for corporate and SME clients.
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Operational Resilience Framework: A Case Study of AmBank Malaysia |
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