[OR] [BI] [E3] [CBS] [4] [ST] Perform Scenario Testing

Sub-CBS Code

Sub-CBS

Recommended Scenario Test Themes

Impact/Effect

Evidence of Proactive Risk Management Action

4.1

Customer Onboarding and Financing Application Initiation

System downtime, identity verification failure, cyber-attack on the onboarding portal

Delayed applications, customer dissatisfaction, and reputational risk

Regular IT resilience drills, multi-channel onboarding options, and monitoring KPIs for application processing

4.2

Credit Assessment and Risk Evaluation

Credit data unavailability, analytics system failure, and insider threat

Incorrect risk scoring, delayed credit decisions

Automated credit scoring backups, data integrity checks, periodic risk scenario workshops

4.3

Credit Approval and Governance

System outages, key approver unavailability, and regulatory change

Delay in approvals, governance breach

Defined escalation matrix, alternative approvers, scenario tabletop exercises

4.4

Financing, Structuring, and Documentation

Document fraud, legal system downtime, cyber intrusion

Contract errors, compliance violations

Digital signature verification, secure document storage, and regular IT security audits

4.5

Facility Setup and Limit Activation

System misconfiguration, interface failure with core banking

Incorrect facility limits, operational disruption

Routine system validation, automated alerts for limit activation errors

4.6

Financing Disbursement and Payment Execution

Payment gateway failure, cyber-attack, human error

Delayed disbursement, financial loss

Dual authorization, simulation exercises for payment disruptions, and monitoring real-time alerts

4.7

Trade and Working Capital Financing Processing

External trade portal downtime, SWIFT network disruption

Transaction delays, liquidity impact

Alternative channels, contingency agreements with partners, and testing of fallback mechanisms

4.8

Financing Account Maintenance and Servicing

Database corruption, staff unavailability, and phishing attempts

Customer service delays, potential financial misstatements

Daily data backups, staff cross-training, and cybersecurity awareness programs

4.9

Collateral and Security Management

Physical collateral loss, valuation errors, system breach

Credit exposure increase, regulatory issues

Collateral audits, automated valuation tools, secure repository for collateral records

4.10

Monitoring, Early Warning, and Portfolio Management

Analytics system failure, incomplete data feeds

Missed early warning signals, portfolio deterioration

Redundant data feeds, scenario stress-testing of monitoring dashboards, proactive portfolio reviews

4.11

Recovery, Remedial, and Legal Management

Legal system downtime, inadequate recovery planning

Delayed recovery, litigation risk

Pre-defined recovery plans, legal scenario exercises, and external counsel engagement

4.12

Regulatory Reporting and Shariah Governance Oversight

Reporting system failure, regulatory change misinterpretation

Non-compliance, penalties

Automated compliance reporting, Shariah governance review simulations, and a regulator communication plan