[OR] [KIB] [E3] [CBS] [1] [MPR] Map Processes and Resources

CBS-1 Securities Broking & Trade Execution

Introduction

Mapping Processes and Resources is a foundational step in Kenanga Investment Bank’s Operational Resilience journey for CBS-1 Securities Broking & Trade Execution.

This chapter translates the identified critical business service into a clear, observable operational reality by mapping each Sub-CBS to the people, processes, technology, third-party arrangements, and dependencies that enable the service to be delivered to clients.

Consistent with the 2025 BNM Discussion Paper on Operational Resilience, this mapping is designed to:

Identify important resources whose disruption could cause intolerable harm to clients, markets, or the Bank
Reveal concentration risk, single points of failure, and hidden third-party dependencies
Provide a defensible basis for impact tolerance setting, scenario testing, and remediation planning

This chapter, therefore, acts as a bridge between service identification and downstream resilience activities such as severe-but-plausible scenario testing and investment prioritisation.

Table P3: Map Processes and Resources for CBS-1

Sub-CBS Code	Sub-CBS	Key Processes	People	Technology (Applications & Infrastructure)	Third-Party Vendors	Upstream / Downstream Dependencies
1.1	Client Onboarding & Order Intake	Client due diligence (CDD), account opening, KYC verification, trading limit setup, order receipt (online/phone)	Client onboarding officers, dealers, and compliance analysts	Core brokerage system, KYC platforms, CRM, document management system, secure network	e-KYC providers, credit bureaus, identity verification vendors	Upstream: Client documentation, AML screening Downstream: Order validation, pre-trade checks
1.2	Order Validation & Pre-Trade Checks	Order completeness checks, limit validation, margin availability checks, and compliance filters	Dealers, risk management team, compliance officers	Order management system (OMS), risk engines, compliance rule engines	Market data vendors (prices), margin system providers	Upstream: Order intake Downstream: Order routing & execution
1.3	Order Routing & Trade Execution	Routing to the exchange/broker, execution monitoring, execution confirmation	Dealers, trading desk supervisors	OMS, exchange connectivity, FIX gateways, low-latency networks	Bursa Malaysia, executing brokers, telecom providers	Upstream: Validated orders Downstream: Trade capture & enrichment
1.4	Trade Capture & Enrichment	Trade booking, enrichment with client/account data, and fee computation	Trade support officers, operations analysts	Trade capture system, reference data platforms, pricing engines	Market data vendors	Upstream: Executed trades Downstream: Trade validation & verification
1.5	Trade Validation & Verification	Trade matching, discrepancy checks, and exception identification	Operations control team, middle-office analysts	Reconciliation tools, trade validation engines	Clearing brokers, CCP interfaces	Upstream: Trade capture Downstream: Confirmation & affirmation
1.6	Trade Confirmation & Affirmation	Client confirmations, counterparty affirmation, and dispute handling	Operations staff, client service officers	Confirmation platforms, messaging systems (SWIFT/email portals)	SWIFT service providers, messaging vendors	Upstream: Validated trades Downstream: Settlement instruction & clearing
1.7	Trade Settlement Instruction & Clearing	Settlement instruction generation, clearing submission, funds/securities movement	Settlements team, treasury operations	Settlement systems, custodian interfaces, payment systems, secure networks	Custodian banks, clearing houses, and payment service providers	Upstream: Affirmed trades Downstream: Post-trade reconciliation
1.8	Post-Trade Reconciliation & Exception Handling	Cash and securities reconciliation, break investigation, escalation	Operations reconciliation team, risk oversight	Reconciliation tools, exception management systems	Custodians, clearing houses	Upstream: Settlement data Downstream: Trade reporting & client settlement
1.9	Trade Reporting & Regulatory Compliance	Regulatory reporting, transaction reporting, and audit trail maintenance	Compliance officers, regulatory reporting analysts	Reporting engines, data warehouses, and regulatory submission portals	Regulators’ reporting gateways, trade repositories	Upstream: Completed trade lifecycle data Downstream: Client confirmation & disclosures
1.10	Client Settlement & Confirmation Delivery	Client cash/securities settlement, final confirmations, client notifications	Client services team, operations support	Client portals, payment systems, and notification platforms	Banks, payment processors, custodians	Upstream: Cleared & reconciled trades Downstream: Client account updates, service continuity

Alignment and Practical Notes (BNM-Aligned Examples)

In line with the 2025 BNM Discussion Paper on Operational Resilience, this mapping explicitly:

Identifies important business services down to a granular Sub-CBS level
Maps people, technology, facilities, and third-party dependencies, including market infrastructures (e.g. exchanges, custodians)
Supports identification of severe but plausible disruptions, such as:
- Loss of OMS connectivity to Bursa Malaysia
- Unavailability of a custodian bank during settlement windows
- Cyber disruption affecting client onboarding and trade reporting platforms

BNM expects such mappings to be living artefacts, reviewed after material changes (system upgrades, outsourcing changes, regulatory updates) and used actively in scenario testing and resilience investment decisions, not merely documented for compliance.

The Map Processes and Resources exercise for CBS-1 Securities Broking & Trade Execution provides Kenanga Investment Bank with a clear, evidence-based view of how this critical service is delivered under normal conditions—and where it is most vulnerable under stress.

By linking each Sub-CBS to its supporting processes, people, technology, third parties, and dependencies, Kenanga establishes the foundation required by regulators to:

• Define impact tolerances with confidence
• Design severe-but-plausible scenario testing
• Prioritise resilience enhancements where client and market harm would be greatest

This mapping is not the end state. It is the starting point for embedding operational resilience into daily decision-making, investment planning, and crisis response for one of Kenanga Investment Bank’s most critical market-facing services.

Resilience by Design: Kenanga Investment Bank’s Operational Resilience Journey
eBook 3: Starting Your OR Implementation
CBS-1 Securities Broking & Trade Execution
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.

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