Prudential regulatory risk governance of IT multi-sourcing strategies within the Australian banking sector
Paper
Paper/Presentation Title | Prudential regulatory risk governance of IT multi-sourcing strategies within the Australian banking sector |
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Presentation Type | Paper |
Authors | Strong, Brian (Author), Cater-Steel, Aileen (Author) and Lane, Michael (Author) |
Editors | Tan, Felix and Bunker, Deborah |
Journal or Proceedings Title | Proceedings of the 25th Australasian Conference on Information Systems (ACIS 2014) |
Number of Pages | 10 |
Year | 2014 |
Place of Publication | Auckland, New Zealand |
Web Address (URL) of Paper | http://aut.researchgateway.ac.nz/handle/10292/8016?show=full |
Conference/Event | 25th Australasian Conference on Information Systems (ACIS 2014) |
Event Details | Rank A A A A A A A A A A |
Event Details | 25th Australasian Conference on Information Systems (ACIS 2014) Parent Australasian Conference on Information Systems (ACIS) Delivery In person Event Date 08 to end of 10 Dec 2014 Event Location Auckland, New Zealand |
Abstract | Banks employ different IT sourcing strategies to reduce IT costs. Australian banks are highly regulated by the Australian Prudential Regulatory Authority (APRA). We selected the two largest Australian banks, Westpac Banking Corporation (WBC) and Commonwealth Bank of Australia (CBA) to investigate the complexity of their IT multi-sourcing models and associated risks. We analysed public documents to reveal the IT sourcing trends from 2009 to 2013, and compared the alignment of the banks' risk frameworks with the APRA risk framework. Finally we reviewed APRA's risk management at the finance industry level and identified that neither risk management nor governance is performed and/or reported by APRA to the Reserve Bank of Australia. Therefore to ensure the cumulative effect of the banks' IT sourcing strategies are measured and reported at the industry level, it is recommended that APRA develops and implements an industry-level risk framework mirroring standard APS 115. |
Keywords | IT multi-sourcing; offshore-outsourcing; operational risk; Australian banks; Australian Prudential Regulatory Authority |
ANZSRC Field of Research 2020 | 350204. Financial institutions (incl. banking) |
350208. Investment and risk management | |
460908. Information systems organisation and management | |
Public Notes | Open access. This publication is copyright. It may be reproduced in whole or in part for the purposes of study, research, or review, but is subject to the inclusion of an acknowledgment of the source. |
Byline Affiliations | School of Management and Enterprise |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q2v17/prudential-regulatory-risk-governance-of-it-multi-sourcing-strategies-within-the-australian-banking-sector
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