TEAM ONE: BUSINESS DISRUPTION AND SYSTEM FAILURE
KERVIEL ASSET MANAGEMENT
4-Propose at least one control for each risk that could mitigate the risk exposure.
Risk
 Not buying new equipment in a long period
of time.
 Making research with only utilizing external
market data sources.
 Failure to effectively install a new system
due to insufficient system testing as a result
of inadequate staff training and supervision.
 The effects that new software and products
implementations may have on a trading
system, tends to result in a software bug that
can bring down the online trading platform,
creating the most significant interruption to
the platform.
 Electricity blackout.
Proposed Control (s)
purchases validation is a method of control since it
allows you to know what equipment is acquired and
its risk level as well as its quality by testing it.
They should utilize both data generated by themselves
and data obtained from other external sources to
guarantee the level of quality and transparency of data, as
well as to get useful insights about the company and the
industry.
To guarantee the success of its operations risk
management program, employ staff training. Employees
must be informed and aware of possible hazards. This is
extremely critical when a company unit is ready to begin
a new project, such as the implementation of a new
computer system.
System updates, backup systems, and other
measures that come under Business Continuity
Management can help to reduce risks. And it is
possible to do so through a staggered
implementation, which is a pretty effective way of
avoiding broad exposure to risk. Companies can do
a system testing by conducting a pilot program that
impacts only a small number of consumers for a
limited period of time. When properly conducted,
pilots are a beneficial action that significantly
reduces the risks related to system releases.
A properly-organized and executed business continuity
plan (BCP) is critical for a firm's success in the event of a
power outage, and even for gaining insurance coverage
alternatives for these kind of risks.
Risk reduction can be accomplished by: Replacement
with modern equipment and machinery, as well as a
regular maintenance, will result in the prevention of
power failure.