Critical IT Risks and Their Business Implications PPT
This PPT slide, part of the 92-slide Unlock the Power of Operational Risk Management PowerPoint presentation, outlines significant IT-related risks that organizations face, focusing on 3 specific scenarios. Each risk is detailed with its potential impacts and references to past events that illustrate the consequences of such risks.
The first risk involves a "rogue" employee with appropriate access rights who could cause substantial damage to systems or critical data. The impacts of this risk are multifaceted, including costs associated with staff overtime to recover lost data, potential fines from regulators for data breaches, and legal costs from lawsuits related to privacy infringements. Such incidents can disrupt normal business operations, leading to additional costs for re-running batch processes if systems go down.
The second risk pertains to mis-selling stemming from systematic errors in model development. This can result in significant financial losses due to defaulting clients, particularly when limits are set too high. The costs associated with recovering funds can vary based on the type of facility involved, highlighting the importance of robust risk management in financial modeling.
Lastly, the slide addresses the theft of confidential data by employees for personal gain. This risk can lead to severe repercussions, including potential fines from regulators and loss of customer trust. The slide notes that clients are typically compensated by the bank for their losses,, but the bank may still face reputational damage and a decline in revenue.
Overall, the slide serves as a critical reminder of the vulnerabilities within IT systems and the cascading effects that can arise from inadequate risk management practices. Organizations must remain vigilant and proactive in addressing these risks to safeguard their operations and maintain stakeholder confidence.
This slide is part of the Unlock the Power of Operational Risk Management PowerPoint presentation.
The Affinity Consulting Partnership is a global powerhouse of experienced consultants, specializing in technology and digital-driven change.
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