In our recent Responsible Manager seminars we discussed operational risks including system “glitches” resulting from hybrid and patched computer platforms.
The Reserve Bank has now called for industry views on:
- sources of vulnerability in ADIs’ retail operational processes;
- existing controls, safeguards and contingencies in ADIs’ retail operations; and
- ADIs’ existing plans for upgrade and enhancement of the technology supporting retail operations and the objectives of these plans.
Following a number of operational incidents involving disruption to electronic retail payments systems, the Reserve Bank intends to formalise its requirements for the reporting of major retail payments system incidents. Authorised Deposit-taking Institutions (ADIs) that provide retail payments services and operate Exchange Settlement Accounts with the Reserve Bank will be required to report significant incidents in their retail payments operations to the Reserve Bank, according to specified criteria.