Supervision of Information Systems of Financial Institutions
Since financial institutions and financial services are highly dependent on information processing systems, special attention should be paid to weaknesses and potential (operational) risks associated with their use. The materialisation of risks in this area can affect profitability, liquidity and capital of financial institutions, as well as the reputation of both a financial institution and the overall financial system. These risks may also lead to disruptions in service provision and dent consumers’ confidence in particular financial products and, ultimately, in the financial system.
The pace of development and change of information technologies poses an additional challenge and calls for continuous monitoring of trends in the area and assessment of their impact on operations of financial institutions.
Recognised as an indispensible aspect of supervision, the supervision of information systems examines the adequacy of information system management in a financial institution. The focus of the Centre for Information Systems Supervision is the information systems risk which, according to NBS definitions, represents an integral part of operational risk, bearing a potential adverse impact on the financial result and capital of a financial institution as a result of inadequate information system management.
The NBS has intensified activities towards establishing the function of supervision of information systems in financial institutions, in order to ensure the adequacy of risk management systems in this area and to act preventively in financial sector supervision, using best practices.