Information System for Business Professionals

Running Head: INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
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1INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
Executive summary
Purpose
The purpose of the report to help in responding to the case study question based on
the issues faced by the Commonwealth Bank in Australia. In this context, the report aims to
provide a sustainable recommendation for the information system related requirement of the
organisation.
Findings
Findings show that Commonwealth Bank of Australia is facing major issues related to
the breach of Anti Money Laundering and counter-terrorism financing Act. To be specific, it
has been found that the problems that occurred were due to insufficient measures against the
anti-money laundering activities. The main reason for this breach was due to the fact that they
did not fulfil the obligation to immediately report the suspicious transaction to the financial
intelligence unit. Apart from these, it has been found the company had poor practices of IT
governance and Information system as a result which they had faced such major issue.
Recommendations
Through an analysis of the findings, it has been found that some improvements are
required in their IT governance and information system related to security with the
development of IDM operations for reporting this future issue. This could be done by using
the COBIT 5 framework of IT governance that will provide the organisation with an idea
associated with IT issues. Moreover, the use of agile technology has been recommending for
improving customer satisfaction and to provide the best management over financial
transactions.

2INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
Conclusion
Lastly, it has been concluded that while implementing the information system into the
operations, CBA needs to care about the ethical and security issues in information technology
and needs to be careful in dealing with them.

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Table of Contents
Introduction................................................................................................................................4
1. Justification for CBA rolled out the Intelligent Deposit Machines (IDMs). The business
advantages that the IDMs offered..............................................................................................5
Competitive methods that the CBA were following and any relevant competitive forces....5
2. Occurrence of AML/CTF breaches........................................................................................6
3. Application of four CoBIT components that are most relevant to the AML/CTF breaches..7
4. Problems in the hardware and software that gave rise to the breaches..................................8
Problems in software..............................................................................................................8
Problems in hardware.............................................................................................................8
5. Agile methods and strategies other than agile methods to prevent the issue.........................9
Information system...............................................................................................................10
Supporting business process and functions..........................................................................12
Supporting business decision...............................................................................................12
Ethical issues and security....................................................................................................13
6. The ways by which Data warehouse could have been used to mitigate the breaches.........14
Recommendations....................................................................................................................15
Conclusion................................................................................................................................17
Reference list............................................................................................................................18
Appendix..................................................................................................................................22
Appendix 1: Money laundering issue...................................................................................22

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Introduction
Information system nowadays has turned in to the fundamental tools for every
organisation. Information’s system can be illustrated as a computerised orientation that
involves human objects and extensive computing operations with a goal to translate
information. Being the feature of operation support system and management associated
system, it is needed to be updated and continuously improved. The main role of the
information system within the company is to assist the business process and operations,
decision making of the managers and develop strategies to improve the competitive edge of
the organisation. For an organisation such as the Commonwealth Bank of Australia, they
need a renewed and standard information system to govern their IT operations.
The information system can be placed in the case study of Commonwealth Bank, as
the organisation faced major charges of breach of anti-money laundering and counter-
terrorism financing activities. In this context, the Sydney police found almost $3million in
banking recipients, among them some of which were printed by CBA deposit machines.
These issues were due to the lack of inadequate IT governance and improper information
system operations.
In this context, the aim of the study is to provide answers to the questions of the case
study by establishing the understanding of information system knowledge to help CBA to
deal with anti-money laundering issue. The study will be emphasising on major areas of
information system in evaluating the important role in CBA operations. Based on this the
report will be providing valuable suggestions to deal with the issue.