[OR] [MBT] [E3] [CBS] [5] [ST] Perform Scenario Testing

CBS-5 Loan and Credit Services

Performing scenario testing is a critical component of operational resilience, ensuring that Metrobank's CBS-5 Loan and Credit Services can effectively handle severe but plausible events that could disrupt operations.

Scenario testing enables Metrobank to simulate various risk events, ranging from cyber attacks to system outages, ensuring that the organisation can identify vulnerabilities and develop effective response strategies.

By integrating cyber and ICT risks into each process of CBS-5, Metrobank can better safeguard sensitive information, ensure business continuity, and minimise financial and reputational damage. The proactive risk management actions listed in the table ensure that each process is resilient to disruptions and that Metrobank is prepared for any eventuality.

This is a table of recommended "Scenario Testing" for each detailed process of the Critical Business Service (CBS-5) Loan and Credit Services at Metrobank. The table also highlights the integration of cyber and ICT risks, along with proactive risk management actions.

Table P6: Perform Scenario Testing for CBS-5

Sub-CBS Code	Sub-CBS	Severe but Plausible Scenario	Impact/Effect	Proactive Risk Management Action	Link to Integration of Cyber and ICT Risks
5.1	Retail Loan Origination and Assessment	Cyber-attack disrupting loan application portals	Delayed loan processing, customer dissatisfaction	Regular penetration testing, enhance multi-factor authentication	Cyber resilience through secure access controls
5.2	Corporate and Commercial Credit Underwriting	Data breach exposing sensitive corporate data	Loss of reputation, financial penalties	Data encryption, access control policies	Integration of data protection and encryption standards
5.3	SME Financing and Credit Processing	System outage is preventing SME loan approvals	Disruption in loan processing, delays in SME funding	Backup systems, regular disaster recovery drills	ICT continuity and data recovery plans
5.4	Credit Approval and Sanctioning	Decision-making system failure leading to incorrect credit approvals	Increased loan defaults, financial loss	Automated decisioning review, monitoring systems	Cybersecurity measures for decision-making integrity
5.5	Loan Documentation and Contract Execution	Signature software malfunction or fraud risk	Delay in contract execution, legal liabilities	Implement digital signature verification, fraud detection	Strong anti-fraud measures and cybersecurity monitoring
5.6	Collateral Management and Security Registration	Failure in the collateral registration system	Legal and financial risk due to unregistered collateral	Regular updates to collateral systems, audit trails	Cyber risk integration in digital collateral management systems
5.7	Loan Disbursement and Account Setup	Technical failure in the loan disbursement platform	Disruption in fund transfer, customer complaints	Redundant systems, manual backup protocols	Integration of secure transfer protocols for financial transactions
5.8	Loan Servicing and Customer Support	The customer service system crashes during peak periods	Service delays, customer dissatisfaction	Increase in system capacity, customer service AI tools	Cyber-attack preparedness for customer support systems
5.9	Credit Monitoring and Risk Review	Inaccurate credit score updates due to a system glitch	Wrongful credit rating, regulatory issues	Continuous system auditing, AI-driven monitoring	Cybersecurity for maintaining accurate customer data integrity
5.10	Collections and Delinquency Management	System breach affecting collection systems	Inability to contact clients, non-compliance with regulations	Monitoring systems for data integrity, secure payment gateways	Integration of cyber risk mitigation in collection management
5.11	Regulatory Reporting and Compliance	Failure in the reporting platform during regulatory submission deadlines	Regulatory fines, compliance issues	Automated backup systems, regulatory compliance checks	Cyber compliance in reporting systems to protect data integrity
5.12	Loan Portfolio Analytics and Strategy	Data corruption or inaccuracy in loan performance analytics	Poor decision-making, portfolio mismanagement	Regular data audits, use of AI to detect anomalies	Cyber risk management for data analytics platforms

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

The chapter on "Performing Scenario Testing" for CBS-5 Loan and Credit Services highlights the importance of preparing for severe but plausible scenarios that could impact Metrobank's loan and credit services.

By mapping out potential disruptions and implementing proactive risk management actions, Metrobank can ensure its critical business services remain resilient and compliant with operational resilience regulations.

Incorporating cyber and ICT risk integration into every process ensures the bank is prepared for the evolving landscape of cybersecurity threats, safeguarding both the bank’s operations and its customers.

Through continuous testing, refinement of risk mitigation strategies, and adaptation to new challenges, Metrobank will be equipped to navigate unforeseen disruptions effectively.

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Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide

[OR] [MBT] [E3] [CBS] [5] [ST] Perform Scenario Testing

Operational Resilience Certified Planner-Specialist-Expert

CBS-5 Loan and Credit Services

Table P6: Perform Scenario Testing for CBS-5

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

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Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide

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Operational Resilience Certified Planner-Specialist-Expert

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CBS-5 Loan and Credit Services

Table P6: Perform Scenario Testing for CBS-5

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

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