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


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.


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?


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.


3 Interconnected Pillars of Basel


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


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.


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.


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

http://www.wipro.com/documents/Capitalizing_on_IT_Infrastructure_Services_For_an_Effective_IT_Risk_Management_in_Banks.pdf




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

http://www.wipro.com/insights

mailto:[email protected]


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

http://www.wipro.com/


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.

http://www.wipro.com/

Capitalizing on it infrastructure services

Documents

Transcript of Capitalizing on it infrastructure services