Banks should follow appropriate guidelines, standards and framework for successful IT governance: Mustafizur Rahman

Published in The Daily Observer on Tuesday, 24 May 2016

88 banks have no IT roadmap

Abu Sazzad

Around 88 per cent banks do not have a documented and approved IT roadmap, which unveils the sector’s weakness.

Country’s banking sector is still far away from effective IT governance framework due to carelessness of top management of banks as well as the central bank, according to the Bangladesh Institute of Bank Management.

About 96 per cent banks have no IT strategy committee, while no IT steering committee exists in 92 per cent banks.

BIBM Associate Professor Md. Shihab Uddin Khan said, “There is no denying the fact that in the technology-savvy age good IT governance is a must. Banks are increasingly relying on technology to conduct their operations, gain customers’ satisfaction and ensure cost- effectiveness in the interest of minimizing risk management factors”, Khan also said.

ICT-related risk is considered a component of operational risk, he said.

The BIBM teacher has underscored the need for forming an ICT risk management committee in all banks to govern overall ICT risks and mitigation measures.

Banks’ top management thinks investment in the IT sector is a waste of money, he pointed out. When asked about remedies, Khan said Bangladesh Bank should conduct special training among top management to understand the necessity of investment in IT sector.

Lack of clear understanding of IT governance by senior management and board is one of the major challenges, he said. Banks are not transparent in expressing significant internal IT risks and security issues, khan claimed.

CPD Executive Director Mustafizur Rahman said banks should give proper attention to follow appropriate guidelines, standards and framework for successful IT governance in order to achieve sustainable business and offer new innovative products to its customers. “If the central bank officials have appropriate IT expertise, the reserve heist would not have occurred”, said Rahman.


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