IT Project or System Failure
Below are the details of the operational risks covered within this selected sub-risk category:
IT projects fail to deliver business requirements within planned timelines
Risk Description: -
Failure of key IT projects to deliver targeted business requirements within planned project timeline may result in business disruption and unplanned costs. Examples of failure may include: -
- New IT System for mortgage customer advisors unable to offer all planned business requirements within planned project timelines.
- New IT System for processing insurance claims unable to process all types of claims within planned project timelines.
IT projects fail to deliver business requirements within planned budget
Risk Description: -
Failure of key IT projects to deliver targeted business requirements within planned budget may result in business disruption and unplanned costs. Examples of failure may include: -
- 24 months delay in implementing an enterprise CRM System increasing cost of implementation from planned $5 million to $20 million.
- 12 months delay in implementing new Claim Processing System increasing cost of implementation from planned $4 million to $6 million.
Unplanned outage of key IT Systems
Risk Description: -
Unplanned outage of key IT Systems may result in business disruption, incorrect/delayed processing, incorrect/delayed reporting and unplanned costs. Examples of failure may include: -
- Outage of IT System to process payments from customer accounts.
- Outage of IT System hosting online banking website.
- Outage of IT System supporting ATM machines.