CBS Risks, Security Policy & Controls (2024)

FAQs

What is transaction processing risk in CBS? ›

Transaction Processing Risk arises because faulty reporting of important market developments to the bank management may also occur due to errors in entry of data for subsequent bank computations.

What are the different types of risk associated with the core banking system? 1) Operational Risk: It is defined as a risk arising from direct or indirect loss to the bank which could be associated with inadequate or failed internal process, people and systems.

Branch Banking:CBS are the bank's centralized systems that are responsible for ensuring seamless workflow by automating the frontend and backend processes within a bank. CBS enables single-view of customer data across all branches in a bank and thus facilitate information across the delivery channels.

The basic features of the Core Banking System include loan processing, processing and recording deposits, managing customer information, managing payment systems, 24*7 access to the banking systems, managing internet banking, mobile banking facilities, etc.

Core Banking Solution (CBS) is the networking of bank branches, which allows customers to manage their accounts, and use various banking facilities from any part of the world. In simple terms, there is no need to visit your own branch to do banking transactions. You can do it from any location, any time.

It essentially encompasses all negative events that can prevent a deal from happening. A deal with a high transaction risk will typically require a higher expected return; therefore, it is important to consider such risk when evaluating a prospective investment.

These risks are: Credit, Interest Rate, Liquidity, Price, Foreign Exchange, Transaction, Compliance, Strategic and Reputation. These categories are not mutually exclusive; any product or service may expose the bank to multiple risks.

While the types and degree of risks an organization may be exposed to depend upon a number of factors such as its size, complexity business activities, volume etc, it is believed that generally the risks banks face are Credit, Market, Liquidity, Operational, Compliance / Legal /Regulatory and Reputation risks.

The major risks faced by banks include credit, operational, market, and liquidity risks. Prudent risk management can help banks improve profits as they sustain fewer losses on loans and investments.

CBS is a system of braking where an equal amount of force is applied to both the front and rear wheels of vehicles. Thus, the term “combined” arises from this system. The brakes on the CBS system are present in both the rear and front wheels. There is also a device called an equalizer present in the CBS system.

What does CBS provide? ›

CBS News 24/7 is the anchored streaming news service from CBS News and Stations, available free to everyone with access to the Internet. The CBS News Streaming Network is your destination for breaking news, live events, and original reporting locally, nationally, and around the globe.

CBS News is home to the nation's #1 news program, “60 MINUTES,” “CBSN,” the 24/7 digital streaming news network, and the award-winning broadcasts “CBS THIS MORNING,” co-hosted by Gayle King, Anthony Mason and Tony Dokoupil, the “CBS EVENING NEWS WITH NORAH O'DONNELL,” “CBS SUNDAY MORNING, “48 HOURS,” “CBS THIS MORNING: ...

CBS in banking also handles the bank's basic operations, such as keeping track of customers' financial transactions, calculating interest on deposits, updating account statements, etc. Because CBS performs these tasks, bank staff can serve their customers with reduced overhead pressure.

TECHNOLOGY COMPONENTS OF CBS

The software resides in a centralized application server which is in the Central Office Data Centre, so the application software is not available at the branch but can be accessed from the branches or online.

It means your Bank's Core Banking Solution Systems has gone offline from NPCI's IMPS Network for a while. You can try the transfer after a few hours once CBS Comes online or transfer the Money via NEFT.

Process Risk is considered to be a sub-component of operational risk. It exists when the process that supports a business activity lacks both efficiency and effectiveness, which may then lead to financial, customer, and reputational loss. This form of risk may be present within any stage of a business transaction.

Transaction monitoring refers to the monitoring of customer transactions, including assessing historical/current customer information and interactions to provide a complete picture of customer activity. This can include transfers, deposits, and withdrawals.

Credit Transaction Risk – Credit transaction risk is the risk of financial losses and negative social performance related to loans to clients, caused by inadequate policies regarding loan disbursem*nt, follow-up, and recovery.

Process risks in banking

For example, during the KYC process or loan processing stage, a bank filling the wrong information on the documents will slow down processes, such as loan/credit card approvals, and financial statement generation and can suffer from high audit and compliance fees.