[OR] [AmB] [E3] [CBS] [5] [SuPS] Identify Severe but Plausible Scenarios

CBS-5 Investment & Wealth Management

Identifying Severe but Plausible (SBP) scenarios is a core step in operational resilience because it pushes the organisation to think beyond routine risk events and consider disruptions that are extreme in impact yet realistic in today’s environment.

For AmBank’s Investment & Wealth Management services, this means examining how market volatility, technology failures, third-party issues, regulatory actions, and cyber threats could materially disrupt the delivery of advice, execution, reporting, and client protection.

The objective of this chapter is to help stakeholders systematically visualise where and how such shocks could affect each critical process, so that resilience measures are grounded in credible stress conditions rather than abstract risks.

Below is a recommended set of SBP scenarios mapped to each detailed process under CBS-5 Investment & Wealth Management, together with likely impacts, proactive actions, and explicit links to cyber and ICT risk integration.

Table P5: Identify Severe but Plausible Scenarios for CBS-5

Sub-CBS Code	Sub-CBS	Severe but Plausible Scenario	Impact / Effect	Proactive Risk Management Action	Link to Integration of Cyber and ICT Risks
5.1	Wealth Advisory & Financial Planning	Prolonged outage of the advisory platform during the period of extreme market volatility	Inability to provide timely advice; client losses; reputational damage	Alternate advisory channels (phone/manual), pre-approved market playbooks, and advisor training for crisis periods	Resilient advisory systems, DR site for CRM/planning tools, secure remote access for advisors
5.2	Unit Trust & Fund Distribution	Major fund house suspension/redemption gate due to market stress	Liquidity constraints, surge in complaints, and regulatory scrutiny	Pre-defined communication scripts, liquidity risk disclosures, and diversification guidance	Integration with fund platforms’ cyber posture, secure API connectivity, and vendor ICT risk assessments
5.3	Fixed Income & Direct Bond/Sukuk Investments	Market infrastructure disruption (e.g., trading/settlement system outage) on the coupon or maturity date	Settlement delays, financial loss, and client dissatisfaction	Settlement contingency procedures, backup brokers/custodians, liquidity buffers	Redundant connectivity to market systems, SWIFT security controls, and a tested BCP for treasury systems
5.4	Dual Currency & Structured Products	Extreme FX movement triggers large client losses and system capacity strain	Margin calls, disputes, and conduct risk exposure	Robust suitability assessments, stress illustrations, limit frameworks	High-availability pricing engines, cyber-secure market data feeds, and system load testing
5.5	Equities & Capital Markets Services	Cyberattack on the trading platform is causing a trading halt or data integrity concerns	Trade failures, financial/reputational loss, and regulatory issues	Incident response drills, trade reconstruction procedures, and client communication protocols	SOC monitoring, DDoS protection, multi-factor authentication, and real-time integrity monitoring
5.6	Private Banking & HNW Solutions	Relationship manager compromise (phishing) leading to fraudulent instructions	Potential unauthorized transactions; trust erosion	Call-back verification, transaction monitoring, and RM cyber awareness	Privileged access controls, endpoint protection, and secure client communication channels
5.7	Bancassurance & Wealth Protection	Insurer partner system breach affecting policy data and processing	Delays in policy issuance/claims; data privacy risk	Strong SLAs with insurers, data sharing minimisation, and joint incident exercises	Third-party cyber risk management, encrypted data exchange, API security reviews
5.8	Estate & Legacy Planning (Will/Wasiat)	Loss/corruption of digital will records or document repository	Legal disputes; service disruption; reputational impact	Secure document management, off-site backups, periodic data integrity checks	Immutable backups, access logging, encryption at rest, and in transit
5.9	Client Reporting & Compliance	Regulatory reporting system failure near submission deadline	Late/incorrect submissions; penalties	Manual fallback reporting, regulatory liaison protocols, buffer timelines	Redundant reporting systems, data validation controls, and secure data pipelines

Banner [Summing] [OR] [E3] Identify Severe but Plausible Scenarios

Developing and maintaining a clear view of Severe but Plausible scenarios enables AmBank to shift from reactive recovery to deliberate resilience design. By linking each critical wealth management process to credible disruption scenarios and embedding cyber and ICT considerations into the analysis, the bank can prioritise investments, strengthen cross-functional coordination, and demonstrate to regulators that resilience is actively managed.

As the operating environment evolves, these scenarios should be refreshed regularly, tested through exercises, and used to guide continuous improvement so that Investment & Wealth Management services remain dependable even under extreme stress.

Operational Resilience Framework: A Case Study of AmBank Malaysia
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CBS-5 Investment & Wealth Management
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Operational Resilience Framework: A Case Study of AmBank Malaysia

[OR] [AmB] [E3] [CBS] [5] [SuPS] Identify Severe but Plausible Scenarios

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CBS-5 Investment & Wealth Management

Table P5: Identify Severe but Plausible Scenarios for CBS-5

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Operational Resilience Framework: A Case Study of AmBank Malaysia

[OR] [AmB] [E3] [CBS] [5] [SuPS] Identify Severe but Plausible Scenarios

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Operational Resilience Certified Planner-Specialist-Expert

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Table P5: Identify Severe but Plausible Scenarios for CBS-5

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CBS-5 Investment & Wealth Management