[OR] [MBT] [E3] [CBS] [10] [ST] Perform Scenario Testing

CBS-10 Overseas Remittance and Foreign Exchange Services

[OR] [MBT] [E3] [CBS] [9] [ST] Perform Scenario Testing

In operational resilience, scenario testing is an essential tool used to evaluate how critical business services react to both expected and unexpected disruptions.

For Metrobank's CBS-10 Overseas Remittance and Foreign Exchange Services, scenario testing ensures that each sub-CBS is prepared for severe but plausible events that could affect the continuity of services.

This testing is vital for identifying potential weaknesses, testing response strategies, and validating the bank's ability to recover quickly. It also ensures that Metrobank adheres to industry regulations and minimizes operational risks, safeguarding both the bank’s reputation and customer trust.

Here is the table showing the recommended "Scenario Testing" for each detailed process of CBS-10 Overseas Remittance and Foreign Exchange Services, with the requested columns:

Table P6: Perform Scenario Testing for CBS-10

Sub-CBS Code	Sub-CBS	Recommended Scenario Test Themes	Impact/Effect	Evidence of Proactive Risk Management Action
10.1	International Remittance Processing	System failure due to high-volume remittances or cyber-attack.	Delays in processing, inability to meet service level agreements (SLAs).	Redundancy in infrastructure, DDoS protection, SLA review and testing, and cybersecurity monitoring.
10.2	Remittance Partner and Correspondent Bank Management	Disruption in communication between Metrobank and correspondent banks.	Delay in international funds transfer, client dissatisfaction, and regulatory fines.	Establishment of alternative communication channels, testing of interbank protocols.
10.3	FX Conversion and Rate Management	Flash market volatility affecting exchange rates or the FX rate fixing system failure.	Loss in foreign exchange value, customer dissatisfaction, and reputational damage.	Automated rate alerts, contingency plans for market disruption, and stress testing FX systems.
10.4	OFW Remittance Facilitation	System failure during peak remittance periods.	Inability to send remittance funds, increased customer complaints.	Load balancing, capacity testing, and 24/7 operational support during peak periods.
10.5	Cross-Border Compliance and Sanctions Screening	False positives leading to transaction block or delayed screening results.	Regulatory penalties, delays in fund transfers, and reputational risk.	Regular updates of sanction lists, real-time screening improvements, and testing of compliance systems.
10.6	Customer Enrolment and KYC for Remittance Services	Breach of the KYC process due to fraudulent identities.	Loss of funds, legal action, and regulatory compliance failure.	Strengthened identity verification process, biometric verification, and continuous training.
10.7	Dispute Resolution and Trace Requests	Inability to track remittances or resolve disputes in real-time.	Customer frustration, increased operational costs, loss of business.	24/7 trace request team, digital case management system, and feedback loop with customers.
10.8	FX Transaction Settlement and Reporting	Disruption in FX settlement systems or inaccurate reporting.	Financial loss due to incorrect settlements, regulatory reporting failures.	Enhanced reconciliation tools, backup systems for settlement, and automated error detection.

Banner [Summing] [OR] [E3] Perform Scenario Testing

In conclusion, performing comprehensive scenario testing across the various sub-CBS of Metrobank's Overseas Remittance and Foreign Exchange Services is key to maintaining operational resilience.

By simulating plausible disruptions—ranging from system failures to cyber-attacks—Metrobank can ensure its systems are robust, and its response mechanisms are efficient. The proactive risk management actions, such as redundancy plans, improved compliance screening, and automated monitoring systems, play a crucial role in mitigating risks.

This chapter underscores the importance of continuous testing and updating of business continuity plans, ensuring that Metrobank can offer seamless remittance and FX services to its customers, even in the face of severe disruptions.

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CBS-10 Overseas Remittance and Foreign Exchange Services
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Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide

[OR] [MBT] [E3] [CBS] [10] [ST] Perform Scenario Testing

Operational Resilience Certified Planner-Specialist-Expert

CBS-10 Overseas Remittance and Foreign Exchange Services

Table P6: Perform Scenario Testing for CBS-10

More Information About OR-5000 [OR-5] or OR-300 [OR-3]

Comments:

Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide

[OR] [MBT] [E3] [CBS] [10] [ST] Perform Scenario Testing

Operational Resilience Certified Planner-Specialist-Expert

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CBS-10 Overseas Remittance and Foreign Exchange Services

Table P6: Perform Scenario Testing for CBS-10

More Information About OR-5000 [OR-5] or OR-300 [OR-3]

Comments: