These scenarios are not extreme outliers but credible events that have a realistic likelihood of occurring, based on historical incidents, emerging risks, and evolving threat landscapes (including cyber and ICT risks).
For CBS-1 Retail Deposit & Account Services, identifying such scenarios enables BDO Unibank to test its resilience, validate impact tolerances, and ensure the continuity of essential banking services for customers.
The scenarios below incorporate regulatory expectations, including cyber resilience, third-party risk, operational risk, and ICT dependency management, as required by BSP.
|
Sub-CBS Code |
Sub-CBS |
Severe but Plausible Scenario |
Impact / Effect |
Proactive Risk Management Action |
Link to Integration of Cyber and ICT Risks |
|
1.1 |
Customer Onboarding & Account Opening |
Digital onboarding platform outage due to cloud service disruption |
Inability to onboard new customers; revenue loss; reputational impact |
Multi-channel onboarding fallback (branch/manual); cloud redundancy; onboarding SLA monitoring |
Cloud outage, API failure, digital channel dependency |
|
1.2 |
Customer Identity Verification & Compliance Screening |
Failure of the KYC/AML screening system due to vendor system downtime |
Regulatory breach risk; onboarding delays; compliance exposure |
Secondary screening tools, offline verification procedures, and vendor SLA enforcement |
Third-party RegTech failure; data validation system disruption |
|
1.3 |
Account Setup & Product Configuration |
Core banking configuration error during system upgrade |
Incorrect account setup; customer dissatisfaction; operational rework |
Change management controls; pre-deployment testing; rollback procedures |
Core banking system change risk; configuration integrity failure |
|
1.4 |
Initial Funding & Deposit Acceptance |
Branch system outage during the peak deposit period |
Transaction delays, customer dissatisfaction, liquidity processing delays |
Branch offline processing procedures, queue management, and alternate channels |
Branch system downtime; network connectivity disruption |
|
1.5 |
Cash Withdrawal & Funds Access |
ATM network outage due to telecom failure |
Customers unable to withdraw funds; reputational damage |
ATM network redundancy; multi-provider telecom setup; cash contingency plans |
ATM switch failure; telecom dependency risk |
|
1.6 |
Account Maintenance & Customer Information Update |
Data corruption incident affecting customer records |
Incorrect customer information; service disruption; regulatory breach |
Data backup and recovery; audit trails; data validation controls |
Data integrity failure; database compromise |
|
1.7 |
Credential Fulfilment (Cards, Cheques) |
Card production vendor disruption due to a cyberattack |
Delay in card issuance; customer onboarding impact |
Multi-vendor strategy; inventory buffer; vendor risk assessments |
Third-party cyberattack; supply chain disruption |
|
1.8 |
Digital Banking Access Management |
Mass account lockout due to authentication system failure |
Customers unable to access accounts; service complaints spike |
Identity and access redundancy; failover authentication; customer support surge plan |
IAM system failure; authentication service outage |
|
1.9 |
Balance Inquiry & Statements |
Mobile banking app outage due to an application bug |
Customers unable to view account balances; increased call centre load |
App monitoring; rollback capability; alternative channels (ATM/branch) |
Application failure; digital channel instability |
|
1.10 |
Account Transfers |
Payment gateway failure is impacting interbank transfers |
Delayed transfers, liquidity issues, and customer dissatisfaction |
Alternate clearing routes, payment rerouting, and reconciliation controls |
Payment system outage; API/network disruption |
|
1.11 |
Bills Payment & Scheduled Debits |
Failure in the scheduled batch processing system |
Missed payments, penalties, and customer complaints |
Batch job monitoring; retry mechanisms; customer notification protocols |
Batch processing failure; scheduling system error |
|
1.12 |
Transaction Posting & Ledger Update |
Core ledger posting delay due to system overload |
Inaccurate balances; financial reporting delays |
System capacity scaling; performance monitoring; transaction queue management |
Core system overload; processing latency risk |
|
1.13 |
Interest, Fees & Charges Processing |
Incorrect interest computation due to a system defect |
Financial loss; regulatory breach; customer disputes |
Automated validation checks; reconciliation controls; periodic audits |
Calculation engine failure; system logic error |
|
1.14 |
Exception Handling & Dispute Resolution |
Surge in transaction disputes due to a system error |
Operational backlog; customer dissatisfaction |
Case management automation; surge staffing; root cause analysis |
Fraud/dispute system overload; data inconsistency |
|
1.15 |
Fraud Monitoring & Protective Controls |
Fraud detection system failure during a cyberattack |
Increased fraud losses; regulatory penalties |
AI-based fraud monitoring backup; real-time alerts; SOC escalation |
Cyber intrusion; fraud detection system compromise |
|
1.16 |
Reconciliation & Financial Reporting |
Reconciliation system failure due to data mismatch |
Financial misstatements; audit issues |
Automated reconciliation tools; manual fallback; exception reporting |
Data inconsistency; system integration failure |
|
1.17 |
Regulatory Reporting & Compliance |
Failure to submit regulatory reports due to a system outage |
Regulatory penalties; compliance breach |
Backup reporting processes; manual submission capability |
Reporting system failure; regulatory interface disruption |
|
1.18 |
Service Continuity & Incident Response |
Data centre outage due to a natural disaster |
Full service disruption; prolonged downtime |
DR site activation; crisis management protocols; regular DR testing |
Data centre failure; infrastructure resilience risk |
|
1.19 |
Dormancy, Freeze & Closure Management |
Erroneous account freezing due to a system glitch |
Customer dissatisfaction; legal exposure |
Control validations; override mechanisms; audit trails |
System rule error; account control failure |
|
1.20 |
Third-Party & Infrastructure Dependency |
Critical vendor (cloud/core banking) outage |
Widespread service disruption across CBS |
Vendor redundancy; exit strategies; resilience testing |
Third-party concentration risk; systemic ICT failure |
The identification of Severe but Plausible Scenarios for CBS-1 Retail Deposit & Account Services enables BDO Unibank to transition from a reactive business continuity posture to a proactive operational resilience approach.
By systematically analysing disruptions across people, processes, technology, and third-party dependencies, the bank can better understand vulnerabilities and strengthen its ability to remain within defined impact tolerances.
In compliance with BSP Circular No. 1203, these scenarios must be regularly tested through scenario testing and simulation exercises to ensure that resilience strategies are effective under real-world conditions.
Importantly, the integration of cyber and ICT risks across all scenarios reflects the modern threat landscape, where digital disruptions are increasingly the primary drivers of operational failures.
This structured approach ensures that BDO Unibank can sustain critical services, protect customers, and maintain trust even during significant disruptions.
|
Building Operational Resilience: A Case Study of BDO Unibank |
|||||
| eBook 3: Starting Your OR Implementation |
|||||
| CBS-1 Deposit & Account Services | |||||
| CBS-1 DP | CBS-1 MD | CBS-1 MPR | CBS-1 ITo | CBS-1 SuPS | CBS-1 ST |
Gain Competency: For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.
To learn more about the course and schedule, click the buttons below for the OR-300 Operational Resilience Implementer course and the OR-5000 Operational Resilience Expert Implementer course.
|
If you have any questions, click to contact us. |
||
|
|