Technology Risk Management in Banking Sector

In the light of cyberattacks, technology risk management has become challenging.

Banks rely so heavily on software, systems, information technology (IT).

To handle technology risk management and monitor these developing risks, risk functions will probably need new capabilities and procedures.)

All sorts of data, both structured and unstructured, internal and external, are collected and stored in a data lake.

Numerous clients of one of the biggest banks in Pakistan claimed to have lost money as a result of unauthorized bill payments, internet purchases, and bank transfers.

The performance of a financial institution is based on the reliability and security of its technology. System outages can hinder a business and its clients. 

The SBP developed the framework for "Information Technology Governance & Risk Management in Financial Institutions". 

The IT related policies including Disaster Recovery and Business Continuity Plans.

Responsibilities of Senior Management to implement the IT strategy approved by the BOD

Financial institutions shall determine threats and vulnerabilities to its IT environment.

As a risk-mitigating measure, the FI(s) may consider taking insurance cover for various insurable risks, including recovery and restoration costs.