Mitigating Risks Associated with Technology Adoption in Banking Systems
Added on 2019-10-30
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Research on AIS/ERP systems for banks
Running Head: ReportContentsIntroduction....................................................................................................................2Business process.............................................................................................................2Business requirements.....................................................................................................4Systems requirements......................................................................................................5Software and vendor selection..........................................................................................5Ways to utilize technology for business efficiency.............................................................6Efficiency from technology implementation......................................................................7Potential security risks.....................................................................................................7Mitigation strategies........................................................................................................8Conclusion......................................................................................................................9References....................................................................................................................111
Running Head: ReportIntroductionThis report is written for the purpose of conducting a research on the Accounting InformationSystem (AIS) and Enterprise Resource Planning (ERP) systems. The business report has beenprepared for a banking institution, understanding their business processes, requirements of the processes of business and the system and the impact of implementation of such a system on the efficiency of the business processes [ CITATION Mat11 \l 1033 ]. Once the analysis of the business and its processes is completed, this study aims to recommend an AIS/ERP system for them, exploring the possible security risks associated with their application and the ways to mitigate the same [ CITATION Ali16 \l 1033 ].Business processThe business process of any organization can be understood with the help of the functions that they perform. The functions of a standard banking institution are explained in the chart below. All banking functions can be segregated into primary and secondary functions. These are also defined as banking and non-banking functions that these institutions perform. The primary banking functions are further classified into two categories, these include accepting deposits in the form of savings deposits, fixed deposits, current deposits and recurring deposits; and the second category of banking functions is granting of advances. The advancesgranted by the banks included overdrafts, cash credits, loans, bills etc. The non- banking functions of a banking and financial institution are also classified into the following two categories : agency functions and utility functions. The agency functions are the functions in which the banks act as an agent for their customers and provide these services. The services provided by banks as an agent are transfer of fund, collection of cheques, periodic payments, 2
Running Head: Reportportfolio management, periodic collections etc. Apart from the agency functions, banks also act as trustees, executors, advisers and administrators for their customers working on behalf of their clients in the form of the above institutions [ CITATION MIT12 \l 1033 ]. They are the link that the customers have and provide them services that deal with other banks and financial institutions. The general utility functions that the banks perform are issuing of drafts, letter of credits, etc., locker facility, underwriting of the shares, dealing with foreign exchange and currency exchange, project report, social welfare programmes etc. [ CITATION GAk11 \l 1033 ]All the above functions performed by a bank or a financial institution are explained in the chart above. These are the basic functions that banks carry out and there are a number of additional processes that are carried out in addition to these. However, the most commonly performed functions and processes are covered in this section [ CITATION Gra11 \l 1033 ]. 3
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