Scenario testing is a crucial component of operational resilience, ensuring that Metrobank's critical business services (CBS), particularly within the Wealth Management and Trust Banking segment (CBS-8), can continue to operate effectively during disruptions.
The process involves simulating potential adverse scenarios to assess the robustness of each detailed process, testing their response and recovery mechanisms.
In this chapter, we focus on applying scenario testing to CBS-8’s sub-components, including client onboarding, investment advisory, trust account management, and more.
Each sub-CBS undergoes specific scenario testing to evaluate vulnerabilities, integration with cyber and ICT risk management, and ensure compliance with regulatory standards. Proactive actions to mitigate these risks are documented to demonstrate Metrobank’s commitment to securing these critical services.
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Sub-CBS Code |
Sub-CBS |
Recommended Scenario Test Themes |
Impact/Effect |
Evidence of Proactive Risk Management Action |
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8.1 |
Client Onboarding and Profiling |
Test data breach scenarios, fraudulent client data entry, and system downtime. |
Data breaches, fraud, system downtime, and incorrect client information can delay onboarding and compromise security. |
Multi-factor authentication, encryption of client data, and robust data validation procedures. |
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8.2 |
Investment Advisory and Portfolio Management |
Simulate market crashes, algorithmic failures, data corruption, and portfolio mismanagement. |
Incorrect portfolio management, system errors, and market volatility are leading to client losses and dissatisfaction. |
Regular updates to portfolio management software, diversified investment strategies, and stress-testing portfolios. |
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8.3 |
Trust Account Establishment and Administration |
Test failure in account setup, data corruption, and inability to access trust funds. |
Mismanagement of trust accounts and inability to access funds during disruptions. |
Backup systems, disaster recovery protocols, and access control measures for account management. |
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8.4 |
Fund and Asset Management Operations |
Simulate liquidity crises, errors in asset valuation, and failures in fund operations. |
Disruption in fund operations, asset loss, and liquidity issues are affecting client trust. |
Real-time monitoring systems, automated checks for asset management, and contingency plans for liquidity crises. |
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8.5 |
Wealth and Estate Planning Services |
Simulate loss of records, errors in inheritance calculations, and regulatory non-compliance. |
Inaccurate wealth planning, client dissatisfaction, and potential legal issues from mismanagement. |
Regular audits, system updates, and employee training on compliance with evolving tax laws and inheritance rules. |
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8.6 |
Regulatory and Fiduciary Compliance Management |
Test failure to meet regulatory deadlines, reporting discrepancies, and external audit issues. |
Non-compliance with regulations, reporting failures, and legal penalties. |
Real-time compliance tracking, regular internal audits, and automated compliance management systems. |
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8.7 |
Client Reporting and Relationship Management |
Simulate errors in client report generation, communication system failures, and delays in relationship management. |
Loss of client trust, incorrect reports, and communication breakdowns. |
Automated reporting systems with error-checking and regular testing of communication systems. |
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8.8 |
Custodial and Safekeeping Services |
Simulate security breaches, asset loss, and failures in safekeeping services (including both physical and digital assets). |
Loss or damage to assets, compromised security, and failure to safeguard client property. |
Strong security protocols, regular system security checks, and asset recovery contingency plans. |
Scenario testing for Metrobank’s Treasury and Capital Markets Operations functions as a structured resilience validation mechanism to demonstrate the bank’s preparedness against multifaceted disruptions.
These exercises confirm that Treasury can preserve market integrity, fulfil settlement obligations, safeguard client and proprietary assets, and maintain regulatory compliance even under extreme stress.
By embedding cyber and ICT systemic-risk dimensions, the bank ensures comprehensive risk coverage across market, liquidity, operational, and technology domains.
Evidencing proactive response capabilities reinforces supervisory expectations and demonstrates Metrobank’s commitment to a continuously strengthened operational resilience posture.
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Building Resilient Banking Operations: The Metrobank Operational Resilience Implementation Guide |
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| eBook 3: Starting Your OR Implementation |
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| CBS-8 Wealth Management and Trust Banking | |||||
| CBS-8 DP | CBS-8 MD | CBS-8 MPR | CBS-8 ITo | CBS-8 SuPS | CBS-8 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.
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If you have any questions, click to contact us. |
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