CBS-10 Overseas Remittance and Foreign Exchange Services
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In the context of operational resilience, establishing appropriate impact tolerances is crucial for ensuring that Metrobank’s critical business services can continue to operate under a range of adverse conditions.
Impact tolerance refers to the maximum level of disruption to a service or process that is acceptable before significant harm occurs to customers, the organization, or its regulatory obligations.
For CBS-10 Overseas Remittance and Foreign Exchange Services, this involves defining clear parameters for the Maximum Tolerable Downtime (MTD), Maximum Tolerable Data Loss (MTDL), and the potential impacts on customers, regulatory requirements, and operational effectiveness.
In this chapter, we will examine the impact tolerances for each detailed process (Sub-CBS) under CBS-10 by mapping out the tolerance levels and associated risks.
The objective is to provide Metrobank with a robust framework to manage operational disruptions while maintaining critical functions such as international remittance processing, foreign exchange conversion, and cross-border compliance.
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Table P4: Establish Impact Tolerance for CBS-10
|
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 |
|
10.1 |
International Remittance Processing |
2 hours |
0.5% |
Significant delays in remittance, customer dissatisfaction |
Potential failure to meet regulatory reporting timelines |
Operational Impact |
Moderate |
Improve redundancy and monitoring on processing systems |
|
10.2 |
Remittance Partner and Correspondent Bank Management |
4 hours |
1% |
Minor delays in partner communications, possible service interruption |
Risk of non-compliance with international remittance regulations |
Operational & Regulatory Impact |
Low |
Enhance partner communication protocols and response times |
|
10.3 |
FX Conversion and Rate Management |
1 hour |
0% |
FX rate fluctuations can impact customer satisfaction |
Risk of non-compliance with exchange rate reporting standards |
Financial Impact |
High |
Establish rate stability mechanisms and automated alerts |
|
10.4 |
OFW Remittance Facilitation |
3 hours |
2% |
Delay in processing OFW remittances, leading to customer dissatisfaction |
Potential violation of labor-related remittance requirements |
Operational & Regulatory Impact |
Moderate |
Streamline process and improve system capacity |
|
10.5 |
Cross-Border Compliance and Sanctions Screening |
2 hours |
0% |
Delays in screening leading to potential financial risks |
Failure to comply with anti-money laundering regulations |
Regulatory Impact |
High |
Implement more robust compliance checks and automation |
|
10.6 |
Customer Enrollment and KYC for Remittance Services |
4 hours |
1% |
Increased onboarding delays are affecting new customers |
Potential breach of Know Your Customer (KYC) regulations |
Regulatory & Customer Impact |
Moderate |
Review KYC processes to enhance speed without compromising compliance |
|
10.7 |
Dispute Resolution and Trace Requests |
12 hours |
2% |
Customer complaints and dissatisfaction, possible reputational risk |
Risk of non-compliance with dispute resolution requirements |
Operational Impact |
Moderate |
Implement faster dispute resolution workflows |
|
10.8 |
FX Transaction Settlement and Reporting |
6 hours |
1% |
Delay in settlement may lead to incorrect account balances |
Violation of FX transaction reporting standards |
Financial & Regulatory Impact |
High |
Improve reconciliation systems and settlement timeframes |
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Establishing impact tolerance levels for CBS-10 Overseas Remittance and Foreign Exchange Services is an essential step in maintaining operational resilience at Metrobank.
By clearly defining the maximum tolerable downtime, data loss, and understanding the impacts of service disruptions, Metrobank can mitigate potential risks that may arise from external or internal disturbances. This proactive approach ensures that critical business services continue to function within acceptable limits, minimizing harm to customers, operational integrity, and regulatory compliance.
The information provided in this chapter offers a structured approach for Metrobank to evaluate the resilience of its remittance and foreign exchange services. With continuous monitoring, improvements, and action plans in place, Metrobank can ensure the longevity and reliability of its critical services, safeguarding both customer trust and regulatory compliance.
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