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[OR] [PTC] [E3] [CBS] [1] [ST] Perform Scenario Testing

Written by Moh Heng Goh | Apr 15, 2026 10:41:58 AM

Scenario testing is a core component of operational resilience, enabling financial institutions to assess their ability to continue delivering critical business services under severe but plausible disruption scenarios.

In alignment with BSP Circular No. 1203, Philippine Trust Company is required to test its resilience capabilities across people, processes, technology, and third-party dependencies—particularly for critical services such as CBS-1 Deposit and Account Services.

This chapter presents a structured set of scenario testing themes for each Sub-CBS. These scenarios incorporate cyber and ICT risk integration, reflecting increasing regulatory emphasis on cyber resilience, system availability, and third-party risk management.

The table also highlights expected impacts and evidence of proactive risk management actions, ensuring alignment with regulatory expectations for continuous improvement and resilience validation.

Table P6: Perform Scenario Testing for CBS-1

Sub-CBS Code

Sub-CBS

Recommended Scenario Test Themes (Including Cyber & ICT Risks)

Impact / Effect

Evidence of Proactive Risk Management Action

1.1

Customer Onboarding and Account Application

Digital onboarding platform outage; surge in applications during system degradation; cyberattack on onboarding portal

Delayed onboarding, customer dissatisfaction, and revenue loss

Load testing reports; alternate manual onboarding procedures; cybersecurity penetration testing results

1.2

Customer Identification and Verification (KYC/CDD)

Failure of e-KYC systems; third-party identity provider outage; data breach of customer records

Compliance breaches, onboarding delays, and regulatory penalties

KYC fallback procedures; vendor SLA monitoring; data encryption and access logs

1.3

Account Approval and Opening

Workflow system failure; unauthorised access to approval systems

Unauthorised accounts; processing delays

Segregation of duties controls, audit trails, approval matrix, and validation testing

1.4

Initial Funding and Deposit Booking

Core banking system downtime; failed transaction posting; payment gateway outage

Inaccurate balances; failed deposits; reputational impact

Transaction reconciliation logs, backup processing capability, and settlement monitoring

1.5

Product Terms Setup and Account Parameter Maintenance

Misconfiguration of product parameters; system patch failure

Incorrect interest/fees; customer complaints

Change management records; system validation testing; maker-checker controls

1.6

Deposit Transactions Processing

Core banking outage; batch processing failure; ransomware attack on transaction servers

Inability to process deposits; financial losses

Disaster recovery (DR) test results; backup systems; transaction rollback procedures

1.7

Withdrawal and Funds Access Processing

ATM/POS network outage; liquidity constraints; cyberattack on payment switch

Customers unable to access funds; operational disruption

ATM network monitoring; liquidity contingency plans; fraud detection alerts

1.8

Account Servicing and Customer Maintenance

CRM system downtime; unauthorised changes to customer data

Service delays; data integrity issues

Access control logs, customer request tracking, and periodic audits

1.9

Interest, Fees, and Charges Processing

Batch job failure; incorrect interest calculation due to a system error

Financial misstatements; customer disputes

Reconciliation reports; automated validation checks; exception reporting

1.10

Statement, Passbook, and Balance Reporting

Statement generation failure; data corruption; cyberattack on the reporting system

Inaccurate reporting; customer dissatisfaction

Data integrity checks, backup reporting systems, and audit logs

1.11

Digital Account Access and Channel Integration

Mobile/online banking outage; DDoS attack; API integration failure

Loss of digital access; customer churn

DDoS mitigation controls; API monitoring dashboards; uptime reports

1.12

ATM and Card-Based Access Management

ATM network failure; card system compromise; skimming attacks

Inability to withdraw funds; fraud losses

ATM monitoring; card fraud detection systems; EMV controls

1.13

Account Reconciliation and Exception Handling

Reconciliation system failure; delayed exception resolution

Financial discrepancies; reporting errors

Daily reconciliation reports; exception tracking logs; escalation procedures

1.14

Dormancy, Holds, Restrictions, and Account Control Administration

Incorrect account restrictions; system failure in status updates

Customer inconvenience; compliance breaches

Audit trails; periodic account review; control validation

1.15

Fraud Monitoring and Transaction Surveillance for Deposit Accounts

Failure of the fraud detection system; advanced persistent cyber threats

Increased fraud losses; regulatory scrutiny

Real-time monitoring dashboards; incident response drills; threat intelligence integration

1.16

Complaints, Disputes, and Service Recovery

Contact centre outage; ticketing system failure; surge in complaints during crisis

Poor customer experience; regulatory complaints

Call centre DR tests, complaint resolution SLAs, service recovery plans

1.17

Regulatory Reporting and Compliance Monitoring

Failure of reporting systems, inaccurate regulatory submissions, and data breaches

Regulatory sanctions; reputational damage

Regulatory reporting validation; compliance reviews; secure data transmission controls

1.18

Incident Response, Business Continuity, and Recovery

Cyberattack (ransomware); data center outage; third-party service disruption

Prolonged service outage; systemic failure

BCP and DR test results; crisis management exercises; recovery time objective (RTO) validation

 

Scenario testing provides Philippine Trust Company with a structured and forward-looking approach to validating its operational resilience posture.

By simulating severe but plausible disruptions—including cyber threats, system failures, and third-party outages—the bank can identify vulnerabilities and strengthen its response capabilities across all Sub-CBS within CBS-1 Deposit and Account Services.

In line with BSP Circular No. 1203, integrating cyber and ICT risks into scenario testing ensures that resilience is not only operational but also technology- and security-focused.

The evidence of proactive risk management demonstrates the institution’s commitment to continuous improvement, regulatory compliance, and the sustained delivery of critical services, even under adverse conditions.

 

eBook 3: Starting Your OR Implementation
CBS-1 Deposit & Account Services
CBS-1 DP CBS-1 MD CBS-1 MPR CBS-1 ITo CBS-1 SuPS CBS-1 ST

Gain Competency: For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.

 

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