Capitalizing on it infrastructure services
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Transcript of Capitalizing on it infrastructure services
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 1
Effective Risk
Management in Banks
Capitalize on IT Infrastructure Services to
manage risk better
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 2
IT Infrastructure for Risk
Management in Banks
HIGHLIGHTS
The banking industry is witnessing a
renewed focus on regulatory
compliance frameworks like Basel II/III.
IT infrastructure, which is at the bottom layer of
the overall architecture, can enable
compliance and risk management. IT
infrastructure, security and cloud offerings can
help banks better manage risks.
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 3
Managing IT Risks
• Risk management is very critical to the functioning of banks.
• The recent downturn has highlighted the need for careful identification and management of risks in the banking industry.
Why Manage Risks?
• The attack on World Trade Centre took down an entire data center and about 5000 desktops of a leading financial institution.
• The blackout of August 2003 in Manhattan crippled around 320 data centers and affected over 240 financial institutions.
What Risks? • Regulatory frameworks like Basel II/III require adequate measures/controls to be in place to identify, assess, track and manage risks.
• IT infrastructure can enable compliance and risk management.
How To Manage Risks?
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 4
Basel gives guidance on measuring risks
by using methods such as Basic Indicator
Approach, Standardized Approach and
Advanced Measurement Approaches.
Understanding Basel
Basel is a set of banking regulations put
forth by the Basel Committee on Bank
Supervision. Basel III is slated for
implementation by December 2019.
The Basel Accord aims to produce
uniformity in the way banks and their
regulators approach risk management
across national borders.
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 5
3 Interconnected Pillars of Basel
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 6
Common Operational IT Risks
Risk Solutions Impact
Datacenter disasters Disaster recovery planning and management High
Loss of sensitive data
due to breach
Intrusion detection and prevention services,
Data loss prevention
High
Network threats and
vulnerabilities
Unified threat management, security event
log, security device management (eg:
Firewalls)
High
File based
threats/spyware
Anti-virus, anti-spam management, unified
threat management
High
Operations risks, such
as human errors
Quality processes such as change
management to minimize errors and
increased use of automation
Medium/High
Online system
downtime
Quality processes such as change
management to minimize errors and
increased use of automation
Medium/High
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 7
Leveraging Cloud Computing
• Cloud computing has tremendous potential in
business applications. In the banking sector, a
number of factors need to be taken into account
before cloud computing can be used to better
manage these risks.
• Stress testing used by financial institutions to
assess financial risks form a good use case for
variable compute workloads. Using cloud for
stress testing will yield benefits such as:
• No Capital Expenses
• Pay as you go - Variable Costs
• Quick Provisioning & Implementation
• High Scalability
Risk management and compliance will include the sphere of emerging technologies such as Cloud Computing, Mobility and Social Networks.
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 8
Conclusion
• Continuous changes and updates in regulatory
frameworks will result in increased spend on risk
management and compliance.
• Organizations will move to comprehensive,
automated, continuous and auditable risk
programs with added focus on using tools and
automation for managing risks and compliance.
• Analytics, Cloud Computing and Mobility will play
an important role in risk assessment.
• As banks go global with higher levels of risk
exposure, there is a need for IT Risk Management
to align with the overall Enterprise Risk
Management.
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 9
For more details please visit the link below:
http://www.wipro.com/documents/Capitalizing_on_IT_Infras
tructure_Services_For_an_Effective_IT_Risk_Management_
in_Banks.pdf
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 10
Wipro set up the Council for Industry Research, comprised of domain
and technology experts from the organization, to address the needs of
customers. It specifically surveys innovative strategies that will help
customers gain competitive advantage in the market. The Council, in
collaboration with leading academic institutions and industry bodies,
studies market trends to help equip organizations with insights to
facilitate their IT and business strategies.
For more information on the Research Council visit
www.wipro.com/insights or mail [email protected]
About Wipro Council for Industry Research
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 11
About Wipro Technologies
Wipro Technologies, the global IT business of Wipro
Limited (NYSE:WIT) is a leading Information
Technology, Consulting and Outsourcing company,
that delivers solutions to enable its clients do
business better. Wipro Technologies delivers winning
business outcomes through its deep industry
experience and a 360 degree view of “Business
through Technology” – helping clients create
successful and adaptive businesses. A company
recognised globally for its comprehensive portfolio of
services, a practitioner’s approach to delivering
innovation and an organization wide commitment to
sustainability, Wipro Technologies has over 135,000
employees and clients across 54 countries.
For more information, please visit www.wipro.com
© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 12
Thank You ©Wipro Limited, 2012. All rights reserved.
For more information visit www.wipro.com
No part of this document may be reproduced in
whole or in part without the written permission of the
authors.
Wipro is not liable for any business outcome based
on the views presented in this document. For specific
implementation clients should take advise from their
client engagement manager.