In ensuring operational resilience for Metrobank's Critical Business Service CBS-10 Overseas Remittance and Foreign Exchange Services, it is vital to recognise the importance of identifying and preparing for "Severe but Plausible Scenarios."
These scenarios represent high-impact events that, while unlikely, could severely disrupt business operations if not anticipated and managed. The identification and testing of these scenarios are integral to verifying that Metrobank can continue to deliver essential services, including remittance processing, FX transactions, and cross-border compliance, even under adverse conditions. Scenario testing enables Metrobank to assess the effectiveness of its business continuity plans and ensure preparedness for critical incidents.
By integrating these scenarios into its operational resilience framework, Metrobank can enhance its ability to respond proactively to a variety of potential disruptions, including cyber threats, technological failures, or financial market shocks.
|
Sub-CBS Code |
Sub-CBS |
Severe but Plausible Scenario |
Impact/Effect |
Proactive Risk Management Action |
Link to Integration of Cyber and ICT Risks |
|
10.1 |
International Remittance Processing |
Large-scale denial of service attack on the remittance platform |
Disruption to international remittance processing, leading to financial losses and customer dissatisfaction |
Implement multi-layered DDoS protection, backup servers, and continuous monitoring of transaction systems. |
Integration with cyber risk management tools and incident response plans, ensuring quick recovery and resilience against cyber threats. |
|
10.2 |
Remittance Partner and Correspondent Bank Management |
Sudden insolvency or operational failure of a key correspondent bank |
Significant delays or inability to process transactions, affecting customer satisfaction and compliance |
Establish contingency agreements with alternative partners, and ensure multi-currency support across various banks. |
Regular testing of financial service integrations, monitoring of third-party risks, and business continuity planning with partner institutions. |
|
10.3 |
FX Conversion and Rate Management |
Extreme market volatility is causing FX rates to fluctuate beyond operational limits |
Losses from unhedged currency positions and potential compliance issues with currency laws |
Regular hedging strategies, stress-testing of FX models, and use of automated real-time rate monitoring tools. |
Integration with real-time financial systems and cyber risk assessments for market manipulation or data breaches affecting FX operations. |
|
10.4 |
OFW Remittance Facilitation |
Political instability in key remittance source countries is impacting service channels |
Major disruption to the inflow of remittances, leading to service interruptions and regulatory fines |
Diversify remittance channels and corridors, engage with regulators to ensure compliance, and ensure system flexibility. |
Cybersecurity protocols around cross-border remittance systems, ensuring compliance with international sanctions and cybersecurity regulations. |
|
10.5 |
Cross-Border Compliance and Sanctions Screening |
Data breach of customer information leading to compromised compliance data |
Breach of customer trust, possible fines from regulators, and delays in processing due to investigations |
Encrypt customer data, perform regular cybersecurity audits, and enhance user authentication protocols. |
Integration of automated compliance monitoring tools that flag suspicious transactions, integrating with ICT security protocols. |
|
10.6 |
Customer Enrolment and KYC for Remittance Services |
Regulatory changes requiring immediate updates to KYC requirements |
Delays in customer onboarding, potential loss of business due to compliance gaps |
Proactively monitor regulatory changes, implement adaptive KYC platforms, and ensure staff training on new compliance laws. |
Cyber and ICT risk integration to ensure that KYC processes are protected from fraud, including penetration testing and biometric authentication integration. |
|
10.7 |
Dispute Resolution and Trace Requests |
Surge in disputes due to a security vulnerability leading to unauthorised transactions |
Backlog of unresolved cases, damaged reputation, and loss of customer trust |
Implement advanced fraud detection algorithms, and invest in AI-powered customer service chatbots to handle disputes quickly. |
Cyber risk assessments and response protocols, ensuring trace requests are handled efficiently with no risk of further fraud. |
|
10.8 |
FX Transaction Settlement and Reporting |
Settlement system failure due to infrastructure overload or a system bug |
Major delays in settlements, regulatory reporting issues, and financial exposure |
Test system scalability, implement redundancy protocols, and have dedicated teams for real-time issue resolution. |
Integration with ICT systems to detect and prevent system overloads, with proactive patches and real-time monitoring for system health. |
The identification of severe but plausible scenarios for Metrobank’s Credit Card Issuing and Acquiring
Identifying "Severe but Plausible Scenarios" is a critical step in ensuring the operational resilience of Metrobank’s CBS-10 Overseas Remittance and Foreign Exchange Services. These scenarios, while unlikely, could have significant impacts on Metrobank’s ability to deliver its critical services.
By understanding and planning for these events, Metrobank can enhance its preparedness to manage risks, protect its customers, and maintain regulatory compliance. Integrating cyber and ICT risks into this framework strengthens the bank's ability to identify vulnerabilities early and implement proactive risk management actions.
Through continuous scenario testing and real-time response mechanisms, Metrobank can ensure that its services remain resilient, even in the face of the most challenging and unexpected events.
|
Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide |
|||||
| eBook 3: Starting Your OR Implementation |
|||||
| CBS-10 Overseas Remittance and Foreign Exchange Services | |||||
| CBS-10 DP | CBS-10 MD | CBS-10 MPR | CBS-10 ITo | CBS-10 SuPS | CBS-10 ST |
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. |
||
|
|