Holmes Institute HC1041: IT Impact on CBA Business Report

This report delves into the significant impact of Information Technology (IT) on the Commonwealth Bank of Australia (CBA). It explores the crucial role IT plays in enhancing business performance and productivity, while also acknowledging potential disadvantages such as data breaches and cyberattacks. The report highlights the benefits of IT implementation within CBA, including improved efficiency, customer service, and competitive advantages. It also examines the risks associated with IT, such as data security vulnerabilities and the need for robust cybersecurity measures. Furthermore, the report provides recommendations for CBA to maintain and monitor its IT systems effectively, including the development of security policies, employee training, and the implementation of IT governance frameworks. The conclusion emphasizes the importance of adopting technological innovations to maintain a competitive edge and mitigate potential risks, ultimately ensuring the security and success of CBA's IT infrastructure.

2/2/2020
Running Head: IT FOR BUSINESS 0
IT for Business
Report
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Table of Contents
Introduction...................................................................................................................2
Role of IT in Business...................................................................................................2
CBA need IT..............................................................................................................2
Why IT is important for business survival?...............................................................2
What is required to apply IT into CBA?.....................................................................2
How CBA use IT?......................................................................................................3
What benefits and advantages does IT bring CBA?.................................................3
What type of risks does IT bring to CBA?.................................................................3
How can CBA maintain and monitor IT?...................................................................3
Recommendations........................................................................................................3
Conclusion....................................................................................................................4
References...................................................................................................................5

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Introduction
In the present era, the business was based on the Information Technology (IT)
systems, as most of the processes have used IT to reduce errors from business
processes. Commonwealth Bank of Australia (CBA) has provided many services to
Australians, which are related to banking and financial fields. CBA has faced data
breach of 20 million customer’s data (Barbaschow, 2019). The organization has
created a good image in the market place because of their valuable services.
Moreover, CBA has taken competitive advantages using strategies and technological
innovations. In this report, the impact of IT will discuss using various factors.
Moreover, it will provide risks and challenges in the CBA because of IT. This report
will provide security and privacy importance in a CBA.
Role of IT in Business
IT has used for improving the performance and productivity of a firm. However, there
are some disadvantages of IT, which can be dangerous for a firm. It can damage
their reputation and financial conditions. Moreover, there are many benefits to IT in
the CBA. The organization has used the latest information systems to manage their
business functions. In addition, Artificial Intelligence (AI) has used for improving the
speed and security of CBA. The company has adopted IT-systems at the initial
stage, which is a good decision for the company as well as its customers. In addition,
CBA has spent a large amount on the security of the system (Barbaschow, 2019).
CBA need IT
Bank has used many processes to manage its main functions. Thus, it is necessary
to integrate various business functions that can improve the performance of the
overall organization. There are a number of transitions in a bank, which cannot
manage using manual processes. CBA needs IT-system for managing their business
processes, which are sales, purchases, loans, and many processes. A large amount
of data cannot manage using manual processes. Therefore, CBA needs to advance
IT-systems to increase its speed. IT survival management can be used for managing
various services (Bhagat, 2012).
Why IT is important for business survival?
It is so important to use IT-systems in the present era, as most of the industries have
used technological innovations and IT-systems to integrate and manage all the
functions. It is a good process to manage all the functions of a bank. In addition,
competition is increasing day-by-day in the banking industry. Most of the customers
are interested in those firms, which have adopted technologies, such as AI, the
Internet of Things (IoT), and many more. Moreover, many processes can easily
manage all the things. In addition, IoT has increased the performance of the system
(Bendovschi, 2015).
Moreover, a business can grow because of IT-based innovations. In addition, basic
processes can be managed using IS-systems in a better manner. Customers
relationship makes a huge impact on the business of a firm. Thus, CBA must include
new data centers and servers to secure their data and information from cybercrimes
as well as cyber-attacks (Andrijcic & Horowitz, 2016).

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What is required to apply IT into CBA?
IT-systems are helpful in the management of many business processes, such as
strategic planning, cost estimation, development, training, security, privacy, and
many others. The organization should implement cybersecurity to reduce security
issues. Moreover, there are many international frameworks, which has provided
high-level security, such as ISO 27001, COBIT, PRINE2, and many others.
Moreover, a network should be secure from various types of cyber-attacks (ACSC,
2017).
How CBA use IT?
CBA can develop and implement new IT-systems for managing their business
functions as well as security and privacy systems. In addition, there are many
security issues in the IT systems, which can be reduced using IT governance
systems. In addition, CBA should audit their IT-assets using risk analysis
frameworks, such as ISO 31000. Moreover, governance systems are helpful in the
security and privacy of data and information of customers as well as company. IT
governance is necessary for securing all the processes (Chang, 2017).
In addition, IT-systems have faced many risks and threats from internal and
externals faults. Thus, it is necessary to include security systems to secure data and
information. Besides, data breaches make a huge impact on the reputation and
business of a firm. Thus, CBA must include secured services to prevent their
systems from cybercrimes and cyber-attacks. The organization must provide proper
information to its customers and employees to use IT-systems with a high level of
security (Eisenberg, 2010).
What benefits and advantages does IT bring CBA?
There are many benefits of IT-systems in CBA, as it provides integration and
collaboration between various business functions. It makes a huge impact on the
accuracy, performance, and productivity of the bank. Moreover, the bank has taken
competitive advantages using IT, such as online services attract customers and
investors as well (Marchewka, 2014). However, some technical issues can arise in
front of the bank as well as users. Mobile banking is a good benefit of IT, which
makes many things easy for a user. There are some important factors of an IT-
system, which provide opportunities to expand the business of the company. IT-
system is ethical in a firm as well (ACSC, 2019).
What type of risks does IT bring to CBA?
CBA has faced common issues in their IT-systems, which are data breach, cyber-
attacks, and others. In addition, vulnerabilities are the reason behind those attacks.
Thus, it is necessary to implement security policies and security systems including
cybersecurity (Zhang, et al., 2010). It will prevent their systems from various types of
attacks, such as malfunctions, phishing, ransomware, social engineering, and many
more. Moreover, there is some high level of risks risen in the company because of
the lack of knowledge between employees and users as well. CBA has used proper
strategies as well (Nott, 2019).
Moreover, risk assessment is a basic process to identify various processes, which
can be the reason for data breach and other things in CBA. In addition, CBA can use
ITIL governance systems to manage their security as well. It will be a better option
for CBA (Eisenberg, 2010).

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How can CBA maintain and monitor IT?
IT governance framework can be used to avoid risks from CBA. In addition, the audit
can be used to identify risks and threats for CBA. Moreover, monitoring systems can
be used to identify suspicious activities in the network and system of the
organization. Server and network monitoring tools can be used to avoid data
breaches from the CBA as well (Margaret, 2019). In addition, firewalls and IDS
systems can be used to secure IT-systems and data from various types of risks and
threats. The data breach has included medial data as well (Oakes, 2018). Many
processes can be managed using cybersecurity as well.
Recommendations
IT systems are beneficial for a firm to increase their performance and productivity,
which makes a huge impact on the profit and revenue of the company. CBA should
consider these recommendations to secure their systems and avoid data breaches in
the future, which areas:
1. Develop security policies to secure access to different types of systems and
data.
2. Implement education and training programs to users and employees to avoid
basic mistakes
3. Include security and governance framework to prevent the whole systems
from cyber-attacks including data breaches.
4. Establish a cybersecurity team to identify any incident, which is harmful to the
company
5. Implement a security management program to secure all the business
functions from cybercrimes
The organization must consider all these recommendations to avoid risks and threats
for their business functions. The company can reduce various errors from their
business functions.
Conclusion
In conclusion, CBA can improve their business using new technological innovations,
which is a competitive advantage for the firm. In addition, a data breach has affected
the reputation of CBA in the market place, as users have worried about their data as
well as money. However, the financial loss is another factor of a data breach. CBA
must use security and governance systems to avoid risks and threats for their IT-
systems using COBIT, ISO 27001, and many more. Finally, CBA must adopt security
management programs and IT governance systems to avoid risks and threats of
their IT systems. It will reduce data breaches in the future.

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References
ACSC, 2017. Australian Cyber Security Centre. [Online]
Available at: https://www.acsc.gov.au/publications/ACSC_Threat_Report_2017.pdf
[Accessed 12 December 2018].
ACSC, 2019. Strategies to Mitigate Cyber Security Incidents. [Online]
Available at: https://acsc.gov.au/infosec/mitigationstrategies.htm
[Accessed 3 September 2019].
Andrijcic, E. & Horowitz, B., 2016. A Macro‐Economic Framework for Evaluation of
Cyber Security Risks Related to Protection of Intellectual Property. Risk analysis,
26(4), pp. 907-923.
Barbaschow, A., 2019. CBA slapped with a court-enforceable undertaking after loss
of data on 20m customers. [Online]
Available at: https://www.zdnet.com/article/cba-slapped-with-a-court-enforceable-
undertaking-after-loss-of-data-on-20m-customers/
[Accessed 26 Septemeber 2019].
Barbaschow, A., 2019. Commonwealth Bank pumped AU$752m into tech during H1
2018. [Online]
Available at: https://www.zdnet.com/article/commonwealth-bank-pumped-au752m-
into-tech-during-h1-2018/
[Accessed 26 September 2019].
Bendovschi, A., 2015. Cyber-attacks–trends, patterns and security
countermeasures. Procedia Economics and Finance, Volume 28, pp. 24-31.
Bhagat, . B. C., 2012. Cloud computing governance, cyber security, risk, and
compliance business rules system and method. U. S., Patent No. 13/016,999.
Chang, L. Y., 2017. Cybercrime and Cyber security in ASEAN. In Comparative
Criminology in Asia, pp. 135-148.
Eisenberg, M. B., 2010. Information literacy: Essential skills for the information age.
DESIDOC journal of library & information technology, 28(2), pp. 39-47.
Marchewka, . J. T., 2014. Information technology project management. 5 ed. New
York: John Wiley & Sons.
Margaret, R., 2019. cybersecurity. [Online]
Available at: https://searchsecurity.techtarget.com/definition/cybersecurity
[Accessed 2 Feburary 2020].
Nott, G., 2019. CBA to maintain digital 'leadership position' with $5B strategy, fintech
investment. [Online]
Available at: https://www.cio.com.au/article/665025/cba-maintain-digital-leadership-
position-5b-strategy-fintech-investment/
[Accessed 26 September 2019].

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Oakes, D., 2018. Commonwealth Bank customers' medical data exposed in potential
privacy breach. [Online]
Available at: https://www.abc.net.au/news/2018-12-03/commonwealth-bank-medical-
data-exposed-potential-privacy-breach/10563414
[Accessed 26 September 2019].
Zhang, X., Wuwong, N., Li, H. & Zhang, X., 2010. Information security risk
management framework for the cloud computing environments.. s.l., IEEE, pp. 1328-
1334.