Case 2 : Digital Dilemma of Unique Bank PLC.

Case Scenario: Unique Bank (UB) PLC. is a successful bank known for its diversified services but lagging in tech investment. Facing increasing competition from the rival banks, UB has recently launched a new mobile banking app and outsourced its core IT infrastructure to Cosmo Technologies Ltd. (CTL).

Events :

(i) Software malfunction: A poorly tested update to the mobile app caused widespread transaction failures for 48 hours, leading to customer complaints, lost business and reputations damage.

(ii) Cyber attack: CTL has experienced a ransom-ware attack exposing sensitive customer data and disrupting UB's online services for days that highlighted vulnerabilities in the outsourced system.

(iii) Employee fraud: A mid-level manager, exploiting weak internal controls of the bank, diverted fund through fake vendor payments, a scheme undetected for months.

Challenges :

UB's existing risk management framework, mainly focused on credit risk, proved inadequate for these new digital and third-party related risks, exposing gaps in their processes, people and technology.

Questions :