Strategic Information System: AIS/ERP for Business Advancement
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Report
AI Summary
This report delves into the strategic implementation of AIS/ERP systems within a business context, focusing on enhancing efficiency and mitigating security risks. It begins by defining business processes and developing corresponding business requirements, which then inform the determination of system requirements. A crucial aspect covered is the software and vendor selection process, ensuring alignment with the identified needs. The report further explores practical applications of AIS/ERP technologies in improving business efficiency, followed by an evaluation of the efficiency level achieved through technology implementation. A significant portion is dedicated to examining potential security risks and data breaches associated with these systems, culminating in the provision of guidelines for effective risk mitigation. The analysis uses National Australia Bank (NAB) as a case study, illustrating real-world applications and challenges. This comprehensive report aims to provide a client with the necessary information to make informed decisions regarding investment in information systems.

Running head: Strategic information system
Strategic information system
Strategic information system
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Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Business process..........................................................................................................................................3
Requirements of business...........................................................................................................................5
Requirements of System.............................................................................................................................6
Software and vendor selection....................................................................................................................7
Ways in which bank use ERP software.........................................................................................................8
Level of competence of the technology execution....................................................................................10
Potential security risks, data breaches......................................................................................................11
Guidelines to mitigate the risk...................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................15
2
Table of Contents
Introduction.................................................................................................................................................3
Business process..........................................................................................................................................3
Requirements of business...........................................................................................................................5
Requirements of System.............................................................................................................................6
Software and vendor selection....................................................................................................................7
Ways in which bank use ERP software.........................................................................................................8
Level of competence of the technology execution....................................................................................10
Potential security risks, data breaches......................................................................................................11
Guidelines to mitigate the risk...................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................15
2

Strategic information system
Introduction
The report talks about how Enterprise Resource Planning helps in processing the business and
managing the requirements of the business and the system. It includes suggestions to avoid the
risks and threats that are generally raised in business. The report talks about how banks functions
and operates as a business. It is a long assignment covering eight topics that focus how banks
manage to run their business and what risks it has to face. It gives knowledge on how the
requirements of business should be fulfilled so that banks can stand in the expectations of its
customers.
National Australia Bank has been taken in the task. It is situated in Australia and is considered
one of the largest financial institutions serving thousands of its customers since it establishment.
The bank was founded in 1982. The report shows how NAB has managed to flourish in all these
years and how effectively it has been working since ages. It is one of the largest banks of
Australia and is known to be the most efficient one. The report presents the picture of National
Australia Bank and how ERP system software works for the betterment of business.
Business process
The business process of any company has to be effective. It helps in the functioning of business.
The process involves proper accounting, maintaining finance, customer service and support and
number of services. ERP is one of the important and effective systems of functioning used in any
business (Jörgens, 2013). The banks of Australia use Enterprise Resource Planning in order to
process business. Every industry functions differently. Like the National Australia Bank (NAB)
uses ERP approach to process the business. The services provided by the bank are vast in
number as it provides services like customer support, withdrawal/ deposit center, enquiry and
passbook section, etc. the effective resource planning of the bank helps it to attract number of
customers. This increases their value by serving large number of society. For example, the
process takes place when customers open their account in the bank and follow all the regular
activities like depositing, withdrawing and transferring in monetary terms. The bank is
responsible for satisfying its customers to the maximum by providing support and solutions to
their problems. If the customers are satisfied the bank is able to open many accounts in order to
3
Introduction
The report talks about how Enterprise Resource Planning helps in processing the business and
managing the requirements of the business and the system. It includes suggestions to avoid the
risks and threats that are generally raised in business. The report talks about how banks functions
and operates as a business. It is a long assignment covering eight topics that focus how banks
manage to run their business and what risks it has to face. It gives knowledge on how the
requirements of business should be fulfilled so that banks can stand in the expectations of its
customers.
National Australia Bank has been taken in the task. It is situated in Australia and is considered
one of the largest financial institutions serving thousands of its customers since it establishment.
The bank was founded in 1982. The report shows how NAB has managed to flourish in all these
years and how effectively it has been working since ages. It is one of the largest banks of
Australia and is known to be the most efficient one. The report presents the picture of National
Australia Bank and how ERP system software works for the betterment of business.
Business process
The business process of any company has to be effective. It helps in the functioning of business.
The process involves proper accounting, maintaining finance, customer service and support and
number of services. ERP is one of the important and effective systems of functioning used in any
business (Jörgens, 2013). The banks of Australia use Enterprise Resource Planning in order to
process business. Every industry functions differently. Like the National Australia Bank (NAB)
uses ERP approach to process the business. The services provided by the bank are vast in
number as it provides services like customer support, withdrawal/ deposit center, enquiry and
passbook section, etc. the effective resource planning of the bank helps it to attract number of
customers. This increases their value by serving large number of society. For example, the
process takes place when customers open their account in the bank and follow all the regular
activities like depositing, withdrawing and transferring in monetary terms. The bank is
responsible for satisfying its customers to the maximum by providing support and solutions to
their problems. If the customers are satisfied the bank is able to open many accounts in order to
3
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Strategic information system
serve its customers. This way bank manages to attract number of customers to its branch and
raises its value in the country. The business process handles all the responsibilities so firmly that
it manages that its customers does not face any problem or issues. They handle the important
monetary transactions using various developed software which reduces the chances of risk or
errors (Blundell-Wignall, Atkinson and Roulet, 2014). This business process gives good results
to the bank. The process of business also involves targeting the required goal working in the
team. The members of the National Australia Bank work in group which helps the bank to
perform their responsibilities in lesser time and giving more output. More than one member is
assigned on the same position. This enables them to serve many customers at the same time and
helps them in solving their issues related to bank services in an appropriate manner. The business
process therefore seizes the wrong practices by providing all the facilities to its customers
(Cavusgil et al, 2014).
(Source: https://www.tuicool.com/articles/VfUZbu)
4
serve its customers. This way bank manages to attract number of customers to its branch and
raises its value in the country. The business process handles all the responsibilities so firmly that
it manages that its customers does not face any problem or issues. They handle the important
monetary transactions using various developed software which reduces the chances of risk or
errors (Blundell-Wignall, Atkinson and Roulet, 2014). This business process gives good results
to the bank. The process of business also involves targeting the required goal working in the
team. The members of the National Australia Bank work in group which helps the bank to
perform their responsibilities in lesser time and giving more output. More than one member is
assigned on the same position. This enables them to serve many customers at the same time and
helps them in solving their issues related to bank services in an appropriate manner. The business
process therefore seizes the wrong practices by providing all the facilities to its customers
(Cavusgil et al, 2014).
(Source: https://www.tuicool.com/articles/VfUZbu)
4
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Strategic information system
Requirements of business
Any bank that serves number of customers has certain requirements. These requirements are the
basic needs that they want to stand on the expectations of the public. National Australia Bank
(NAB) is one of the largest banks of Australia which serves thousands of customers. Therefore it
is obvious that is requirements are vast and excessive. Bank requires ERP system now days to
give better services to its customers (vom Brocke and Sinnl, 2011). They need innovative
technology to perform technical tasks like maintaining the cash record that is withdrawn or
deposited and credited and debited transactions that take place in the form of transferring money
through net banking, credit/ debit card, or any other online services. National Australia Bank
(NAB) has its own application software that gives easy access to its customers to keep a track on
their accounting activities. National Australia Bank (NAB) requires good and advanced
technologies to manage the records and more resources to provide facilities to its customers. The
major requirement of the bank is to reduce its cost effectiveness and increase its sales. To fulfill
these requirements of bank the major role is played by ERP. It helps the in collectively enabling
the business information through its integrated elements. Enterprise Resource Planning involves
planning to fulfill the business requirements so effectively that it can facilitate the growth of the
business by not letting it to have lack of resources (Beyea, 2011). Hence, National Australia
Bank uses ERP system to facilitate its growth and to establish new development. The
requirements of the business involves satisfying its customers and growing of banking sectors by
using latest technologies. The planning to fulfill these requirements is done in proper manner by
the professionals who are aware of the kind of strategies one should make and implement. This
makes an easy growth for the banking sectors also making it suitable for its customers.
Resources like automated teller machines, cash sorter machine, PIN pad, ATM machines, drive-
up systems, entrance control systems, etc. are very essential tools used by the banks and also in
National Australia Bank (NAB). To installation and permission to these resources is given by the
government. These resources make it easy for them to run the business effectively and efficiently
and it gives an easy access to serve its customers. Seeking new banking equipments is not that
easy as it seems. Bank has to go through many formalities to get the permission of installation
(Haldane, 2011).
5
Requirements of business
Any bank that serves number of customers has certain requirements. These requirements are the
basic needs that they want to stand on the expectations of the public. National Australia Bank
(NAB) is one of the largest banks of Australia which serves thousands of customers. Therefore it
is obvious that is requirements are vast and excessive. Bank requires ERP system now days to
give better services to its customers (vom Brocke and Sinnl, 2011). They need innovative
technology to perform technical tasks like maintaining the cash record that is withdrawn or
deposited and credited and debited transactions that take place in the form of transferring money
through net banking, credit/ debit card, or any other online services. National Australia Bank
(NAB) has its own application software that gives easy access to its customers to keep a track on
their accounting activities. National Australia Bank (NAB) requires good and advanced
technologies to manage the records and more resources to provide facilities to its customers. The
major requirement of the bank is to reduce its cost effectiveness and increase its sales. To fulfill
these requirements of bank the major role is played by ERP. It helps the in collectively enabling
the business information through its integrated elements. Enterprise Resource Planning involves
planning to fulfill the business requirements so effectively that it can facilitate the growth of the
business by not letting it to have lack of resources (Beyea, 2011). Hence, National Australia
Bank uses ERP system to facilitate its growth and to establish new development. The
requirements of the business involves satisfying its customers and growing of banking sectors by
using latest technologies. The planning to fulfill these requirements is done in proper manner by
the professionals who are aware of the kind of strategies one should make and implement. This
makes an easy growth for the banking sectors also making it suitable for its customers.
Resources like automated teller machines, cash sorter machine, PIN pad, ATM machines, drive-
up systems, entrance control systems, etc. are very essential tools used by the banks and also in
National Australia Bank (NAB). To installation and permission to these resources is given by the
government. These resources make it easy for them to run the business effectively and efficiently
and it gives an easy access to serve its customers. Seeking new banking equipments is not that
easy as it seems. Bank has to go through many formalities to get the permission of installation
(Haldane, 2011).
5

Strategic information system
Requirements of System
Every bank needs systems to acquire profits in business. The commonly used system is ERP
system. This regulates the functioning of banking sector by working on the integrated elements
and presenting them as a whole. Working with Enterprise Resource Planning system is not an
easy task. The method of ERP is complex. In order to understand how ERP system helps the
bank in working it is necessary to communicate with the professionals of engineering. There are
number of system requirements followed in banks like NAB that are discussed below:
Financial and Accounting
Bank needs system to maintain the financial transactions and accounting software to maintain
records. Financial and accounting is considered as one of the important aspect of Enterprise
Resource Planning system. This aspect is seen functioning on a daily basis in banking sector.
Finance is the heart of bank. Finance and accounting is a commerce used term that deals with the
monetary transactions. The use of ERP system helps National Australia Bank to convert complex
transaction into simple ones making it easy for the employees of the bank.
Inventory Transactions
Enterprise Resource Planning has an excellent approach towards managing the inventory. The
transactions made in NAB based on stocks are managed by ERP in such a manner that it does not
cause further problems in transactions related to inventory. The transactions are manageable and
can be changed as and when needed. ERP in such cases becomes an effective source of planning
how to manage these inventories related to banking sector. It helps the business in operating over
stocks and reduces the chances of making mistakes by recording the proper entry. The need of
system in inventories transaction is very much beneficial as it creates an easy platform for the
business to grow.
Secure transactions and 24*7 data base
ERP system is a satisfactory source for customers as it provides 27*7 facility of keeping track on
their banking records. It provides the customers with full security over their accounts and any
mishap done to in the back is barred by bank itself. This facility draws the customers towards
bank and increases its sales. Total security is measured in National Australia Bank where
6
Requirements of System
Every bank needs systems to acquire profits in business. The commonly used system is ERP
system. This regulates the functioning of banking sector by working on the integrated elements
and presenting them as a whole. Working with Enterprise Resource Planning system is not an
easy task. The method of ERP is complex. In order to understand how ERP system helps the
bank in working it is necessary to communicate with the professionals of engineering. There are
number of system requirements followed in banks like NAB that are discussed below:
Financial and Accounting
Bank needs system to maintain the financial transactions and accounting software to maintain
records. Financial and accounting is considered as one of the important aspect of Enterprise
Resource Planning system. This aspect is seen functioning on a daily basis in banking sector.
Finance is the heart of bank. Finance and accounting is a commerce used term that deals with the
monetary transactions. The use of ERP system helps National Australia Bank to convert complex
transaction into simple ones making it easy for the employees of the bank.
Inventory Transactions
Enterprise Resource Planning has an excellent approach towards managing the inventory. The
transactions made in NAB based on stocks are managed by ERP in such a manner that it does not
cause further problems in transactions related to inventory. The transactions are manageable and
can be changed as and when needed. ERP in such cases becomes an effective source of planning
how to manage these inventories related to banking sector. It helps the business in operating over
stocks and reduces the chances of making mistakes by recording the proper entry. The need of
system in inventories transaction is very much beneficial as it creates an easy platform for the
business to grow.
Secure transactions and 24*7 data base
ERP system is a satisfactory source for customers as it provides 27*7 facility of keeping track on
their banking records. It provides the customers with full security over their accounts and any
mishap done to in the back is barred by bank itself. This facility draws the customers towards
bank and increases its sales. Total security is measured in National Australia Bank where
6
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Strategic information system
security agents are hired for keeping check over the bank. They are qualified and trained persons
who can easily get through the situations such as robbery, theft, etc. 24*7 data base becomes a
satisfactory level for the account holders as they can check the details of their account at any
time without having to go to the bank. 24 hours service facility provided to customers makes it
easy for them to trust the bank as they can solve their queries at anytime and they are ready to
help.
Customer service management
ERP system helps the bank in managing customer's services. The service mainly needed by
customers include depositing or withdrawing large amount of money, opening and closing of
accounts, cheque bounces and other related issues. ERP therefore to maintains such problem
keep record of the transaction made by the customers from the being tool the end. The software
also allows banking employees by providing them the way facility of opening and closing the
accounts. Customer service satisfies the customers by solving their problems that occur in their
bank accounts. The customers of National Australia Bank are advantaged by ERP system as their
records are safely managed in the hands of the bank and they can ensure about anything by going
to the bank or visiting their logging account over internet provided by bank through ERP
(Haddara and Zach, 2011).
Software and vendor selection
The software and vendor selection in the bank is one if the very essential things without which it
becomes difficult for the business to operate. In order to have proper availability of inventory,
resources, information or data, it becomes difficult in such cases due to the lacking in selecting
right thing for the company. The software is used for running the business in a unique manner
differently from others. The software are made and designed by the professional engineers who
works on advance level and can develop software that can be beneficial for the company
completely. The software needs to be timely updated to bring new changes in the business
process. Software and vendor selection is a technological way of working in the business. It
brings changes in the banking function whenever needed. Software and vendor selection has to
be wise as it is that important part of business where all the major decisions come from. In
National Australia Bank these technologies have given a significant approach to banking sector
7
security agents are hired for keeping check over the bank. They are qualified and trained persons
who can easily get through the situations such as robbery, theft, etc. 24*7 data base becomes a
satisfactory level for the account holders as they can check the details of their account at any
time without having to go to the bank. 24 hours service facility provided to customers makes it
easy for them to trust the bank as they can solve their queries at anytime and they are ready to
help.
Customer service management
ERP system helps the bank in managing customer's services. The service mainly needed by
customers include depositing or withdrawing large amount of money, opening and closing of
accounts, cheque bounces and other related issues. ERP therefore to maintains such problem
keep record of the transaction made by the customers from the being tool the end. The software
also allows banking employees by providing them the way facility of opening and closing the
accounts. Customer service satisfies the customers by solving their problems that occur in their
bank accounts. The customers of National Australia Bank are advantaged by ERP system as their
records are safely managed in the hands of the bank and they can ensure about anything by going
to the bank or visiting their logging account over internet provided by bank through ERP
(Haddara and Zach, 2011).
Software and vendor selection
The software and vendor selection in the bank is one if the very essential things without which it
becomes difficult for the business to operate. In order to have proper availability of inventory,
resources, information or data, it becomes difficult in such cases due to the lacking in selecting
right thing for the company. The software is used for running the business in a unique manner
differently from others. The software are made and designed by the professional engineers who
works on advance level and can develop software that can be beneficial for the company
completely. The software needs to be timely updated to bring new changes in the business
process. Software and vendor selection is a technological way of working in the business. It
brings changes in the banking function whenever needed. Software and vendor selection has to
be wise as it is that important part of business where all the major decisions come from. In
National Australia Bank these technologies have given a significant approach to banking sector
7
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Strategic information system
by allowing employees to work in less time than doing manually. The software and vendor
selection in NAB has helped the bank to serve its customers. The bank uses ERP system to
regulate its actions. The software helps it to get an easy approach towards business by making
proper decisions within time. ERP has given a new platform to business by giving the collective
information. This system covers all the areas as the software is designed in such a form that it
manages all the facilities of the business.
(Source: https://docs.oracle.com/cd/E37017_01/doc.1115/e22658/F424213AN100FF.htm)
The diagram above shows how the process of software selection and vendor selection is done in
banking sector. It depicts the supplier/ vendor who give number of authorities to the business.
Ways in which bank use ERP software
There are many ways in which Enterprise Resource Planning software can be used in banking
sector. It depends from bank to bank as which facilities it desires for and accordingly the ERP
software is developed (Al-Dhaafri, Yusoff and Al-Swidi, 2013). This ERP software is used
differently in bank. Some of its uses are discussed below:
8
by allowing employees to work in less time than doing manually. The software and vendor
selection in NAB has helped the bank to serve its customers. The bank uses ERP system to
regulate its actions. The software helps it to get an easy approach towards business by making
proper decisions within time. ERP has given a new platform to business by giving the collective
information. This system covers all the areas as the software is designed in such a form that it
manages all the facilities of the business.
(Source: https://docs.oracle.com/cd/E37017_01/doc.1115/e22658/F424213AN100FF.htm)
The diagram above shows how the process of software selection and vendor selection is done in
banking sector. It depicts the supplier/ vendor who give number of authorities to the business.
Ways in which bank use ERP software
There are many ways in which Enterprise Resource Planning software can be used in banking
sector. It depends from bank to bank as which facilities it desires for and accordingly the ERP
software is developed (Al-Dhaafri, Yusoff and Al-Swidi, 2013). This ERP software is used
differently in bank. Some of its uses are discussed below:
8

Strategic information system
Creating security
ERP software is especially designed software which has the facility of creating security over the
bank activities. The software controls the working of the business through login and password,
which restrains other users to use services that National Australia Bank provides (Goldstein,
Chernobai and Benaroch, 2011). The security keeps the business operations protected. It protects
the bank from theft, robbery, loot, etc. It avoids the threats of misleading important information
of the business. The chances of mishap reduce using the ERP software. It maintains the
important and confidential decisions from being out of the business (Laudon and Laudon, 2016).
Incorporative communication
To have incorporative communication in the bank is one of the effective ways of communicating
with members of organization. The use of ERP software helps the bank in managing the work of
business by not allowing it to repeat because of communication. Incorporative communication
builds the relation among the employees (Vrancianu and Popa, 2010). This helps in creating
harmony and reduces the chances of conflicts. It serves with its incorporative behavior not only
to the employees but also to its customers. Having informal communication in business develops
the relationship and therefore the employees can easily share their problems with other
employees. This will make easy to find the solutions also (Lin, 2011).
Employee’s productivity and efficiency
The more the employee will work the better the output will be generated in no time. Banks like
NAB have efficient employees who work for the given time period and are able to manage their
work on time. These employees are trained and encouraged to put efforts in the business. They
are taught to be productive at all times. Employees are the essential part of business, in order to
keep them interested in the business they must give them incentives and appreciate them for their
good work (Silvestro and Lustrato, 2014).
9
Creating security
ERP software is especially designed software which has the facility of creating security over the
bank activities. The software controls the working of the business through login and password,
which restrains other users to use services that National Australia Bank provides (Goldstein,
Chernobai and Benaroch, 2011). The security keeps the business operations protected. It protects
the bank from theft, robbery, loot, etc. It avoids the threats of misleading important information
of the business. The chances of mishap reduce using the ERP software. It maintains the
important and confidential decisions from being out of the business (Laudon and Laudon, 2016).
Incorporative communication
To have incorporative communication in the bank is one of the effective ways of communicating
with members of organization. The use of ERP software helps the bank in managing the work of
business by not allowing it to repeat because of communication. Incorporative communication
builds the relation among the employees (Vrancianu and Popa, 2010). This helps in creating
harmony and reduces the chances of conflicts. It serves with its incorporative behavior not only
to the employees but also to its customers. Having informal communication in business develops
the relationship and therefore the employees can easily share their problems with other
employees. This will make easy to find the solutions also (Lin, 2011).
Employee’s productivity and efficiency
The more the employee will work the better the output will be generated in no time. Banks like
NAB have efficient employees who work for the given time period and are able to manage their
work on time. These employees are trained and encouraged to put efforts in the business. They
are taught to be productive at all times. Employees are the essential part of business, in order to
keep them interested in the business they must give them incentives and appreciate them for their
good work (Silvestro and Lustrato, 2014).
9
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Strategic information system
The diagram above shows the ways how ERP system is used. The sectors that focus on
Enterprise Resource Planning include finance, supply chain, inventory, planning, service,
project, etc (Chen et al, 2012).
Level of competence of the technology execution
An Enterprise resource planning software is highly efficient, given a condition that it is
implemented fittingly with the environment of the organization. Here we talk about cost
efficiency, operational efficiency, scalability and security (Cezar, Cavusoglu and Raghunathan,
2010). The whole process is proficient throughout. Operational efficiency- with the
implementation of ERP software, the need to enter the data manually and repeatedly reduces to a
great extent. This reduces the work load on the employees and the need for more people in the
organization (Sahdat et al, 2011). The bank can focus on its own work irrespective of taking care
of the data of its users, as this will be taken care by ERP system (Monk and Wagner, 2012). The
ERP system allows the organization to think in a wider aspect of operation, cost, productivity
etc. It reduces the burden on the organization. The synchronization in the operations of bank is
well performed. This technology has given the benefit to both, the bank (organization) and the
customers. Hence, we can easily rely on this software as it provides high level of efficiency when
10
The diagram above shows the ways how ERP system is used. The sectors that focus on
Enterprise Resource Planning include finance, supply chain, inventory, planning, service,
project, etc (Chen et al, 2012).
Level of competence of the technology execution
An Enterprise resource planning software is highly efficient, given a condition that it is
implemented fittingly with the environment of the organization. Here we talk about cost
efficiency, operational efficiency, scalability and security (Cezar, Cavusoglu and Raghunathan,
2010). The whole process is proficient throughout. Operational efficiency- with the
implementation of ERP software, the need to enter the data manually and repeatedly reduces to a
great extent. This reduces the work load on the employees and the need for more people in the
organization (Sahdat et al, 2011). The bank can focus on its own work irrespective of taking care
of the data of its users, as this will be taken care by ERP system (Monk and Wagner, 2012). The
ERP system allows the organization to think in a wider aspect of operation, cost, productivity
etc. It reduces the burden on the organization. The synchronization in the operations of bank is
well performed. This technology has given the benefit to both, the bank (organization) and the
customers. Hence, we can easily rely on this software as it provides high level of efficiency when
10
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Strategic information system
implemented (Abou-Moghli, Al Abdallah, and Al Muala, 2012). The following can be kept in
mind while discussing the level of competence of the technology execution:
Cost efficiency- If the system is integrated properly, it can prove to be highly cost-savvy. The
return of investment (ROI) of the bank will upturn to another level. Since there will be no delay
of work hence decisions can be made faster, which will be fruitful to the bank.
Scalability- the ERP system enables to add as well as remove the number of users according to
the demand of the organization. In a bank, there is no surety of the count of the users; hence a
system which is well efficient to keep this amount of data is required. This functionality is very
well provided by the ERP system as its scalability feature (Angelakopoulos and Mihiotis, 2011).
Security- this is highly secured system. There are very less chances of breaching into an ERP
system and steal the data of the users. Considering it as the case of bank, the details of each and
every user is very crucial and sharing or hacking of this information will prove fatal to the bank.
Potential security risks, data breaches
Potential risks of the business relates to the risks that can hamper the business process and make
its downfall. These risks can create a big loss for the firm. Some risks that are seen in an
organization are mentioned below (Ula, Ismail and Sidek, 2011):
Appointing of employees:
We must appoint the reliable and efficient employees who can effectively work for the welfare
of the company. Appointing the employees without knowing their background can be a harmful
step. The employees must be examined otherwise hiring them to work for bank can be
chargeable for the company. The employees must be willing to work and should be honest
towards the activities (Chou et al, 2014).
Improper decisions regarding software
The decisions regarding security must be confidential else it can cause great loss to the business
if they come in the wrong hands. Making of improper decisions can really be hazardous and can
impact wrongly on the company’s growth. It is highly influential for the business to avoid
making of the decisions that can create loss (Sahdat et al, 2011).
11
implemented (Abou-Moghli, Al Abdallah, and Al Muala, 2012). The following can be kept in
mind while discussing the level of competence of the technology execution:
Cost efficiency- If the system is integrated properly, it can prove to be highly cost-savvy. The
return of investment (ROI) of the bank will upturn to another level. Since there will be no delay
of work hence decisions can be made faster, which will be fruitful to the bank.
Scalability- the ERP system enables to add as well as remove the number of users according to
the demand of the organization. In a bank, there is no surety of the count of the users; hence a
system which is well efficient to keep this amount of data is required. This functionality is very
well provided by the ERP system as its scalability feature (Angelakopoulos and Mihiotis, 2011).
Security- this is highly secured system. There are very less chances of breaching into an ERP
system and steal the data of the users. Considering it as the case of bank, the details of each and
every user is very crucial and sharing or hacking of this information will prove fatal to the bank.
Potential security risks, data breaches
Potential risks of the business relates to the risks that can hamper the business process and make
its downfall. These risks can create a big loss for the firm. Some risks that are seen in an
organization are mentioned below (Ula, Ismail and Sidek, 2011):
Appointing of employees:
We must appoint the reliable and efficient employees who can effectively work for the welfare
of the company. Appointing the employees without knowing their background can be a harmful
step. The employees must be examined otherwise hiring them to work for bank can be
chargeable for the company. The employees must be willing to work and should be honest
towards the activities (Chou et al, 2014).
Improper decisions regarding software
The decisions regarding security must be confidential else it can cause great loss to the business
if they come in the wrong hands. Making of improper decisions can really be hazardous and can
impact wrongly on the company’s growth. It is highly influential for the business to avoid
making of the decisions that can create loss (Sahdat et al, 2011).
11

Strategic information system
Ineffective motive to implement software
Software that is implemented in the business must function correctly. Incorrect working of
software can risk the business process. The ERP system that is designed to provide a platform to
these banks must be motivated and implemented correctly. Improper implementation of software
can lead to greater risks (Vrancianu and Popa, 2010).
Customization
Bank use various customized software that provide a unique manner of working to them. This
customized software should be beneficial for the organization else it can turn out to be a security
risk for the business. The customized areas give limited access to other works. It is not vast and
effective. This becomes a hurdle for the bank. It is better to use software developed by
professionals than to customize it for a unique purpose. This will avoid the chances of risks that
develop due to software’s incapability (Gupta, Agrawal and Yamaguchi, 2016).
Revelation of sensitive data
In many large organizations the decisions made or planned by the professional and the
authorities have chances of getting released. It is important for them to be alert while planning
strategies for the company. The sensitive data must not be shared with everyone. It should be
kept confidential. These sensitive data are the important information that should not be leaked.
Leaking of such information can be really dangerous for the organization and will also impact on
its reputation (Abou-Moghli, Al Abdallah and Al Muala, 2012).
These factors show that running a bank is not an easy task. It gives an insight in the risk factors
involved in the business process. These potential risks are threats to business and can be affect
the growth of the business. In order to avoid these risks, the further mentioned risks must be
followed (Biener, Eling and Wirfs, 2015).
Guidelines to mitigate the risk
Banks can hire tight security all over by calling one of the best security agents from all
over the world. These agents are well trained and skilled and know the procedure of
12
Ineffective motive to implement software
Software that is implemented in the business must function correctly. Incorrect working of
software can risk the business process. The ERP system that is designed to provide a platform to
these banks must be motivated and implemented correctly. Improper implementation of software
can lead to greater risks (Vrancianu and Popa, 2010).
Customization
Bank use various customized software that provide a unique manner of working to them. This
customized software should be beneficial for the organization else it can turn out to be a security
risk for the business. The customized areas give limited access to other works. It is not vast and
effective. This becomes a hurdle for the bank. It is better to use software developed by
professionals than to customize it for a unique purpose. This will avoid the chances of risks that
develop due to software’s incapability (Gupta, Agrawal and Yamaguchi, 2016).
Revelation of sensitive data
In many large organizations the decisions made or planned by the professional and the
authorities have chances of getting released. It is important for them to be alert while planning
strategies for the company. The sensitive data must not be shared with everyone. It should be
kept confidential. These sensitive data are the important information that should not be leaked.
Leaking of such information can be really dangerous for the organization and will also impact on
its reputation (Abou-Moghli, Al Abdallah and Al Muala, 2012).
These factors show that running a bank is not an easy task. It gives an insight in the risk factors
involved in the business process. These potential risks are threats to business and can be affect
the growth of the business. In order to avoid these risks, the further mentioned risks must be
followed (Biener, Eling and Wirfs, 2015).
Guidelines to mitigate the risk
Banks can hire tight security all over by calling one of the best security agents from all
over the world. These agents are well trained and skilled and know the procedure of
12
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