factor which comes to fore only in times of disaster, while in organizations that manage security well, the ownership of security vests at the highest levels of governance. implementing security is often considered a one - time activity, which is effectively discharged when funding approvals are accorded for a technology stack. it is often perceived that having a set of information security tools will ensure adequate protection for a reasonable period of time. the information security landscape is dynamic in nature and techniques that worked at one point may not suffice for that year. often a regular high level review and monitoring framework is not in place, leading to a reactive rather than proactive approach to information security. is audits 21. banks may look at is audits being conducted periodically, the scope of audits may include : technology review covering all the technology components of the it projects such as : ( a ) ethical hacking : vulnerability assessment and penetration testing of the network. ( b ) application security : application security audit to identify known vulnerabilities and source code review : ( c ) design review : review the it architecture from security point of view and identify single point of failure. process review covering all the process related to security adopted by the it project. third party review : review should the security controls deployed by the third parties on the government data / information. business continuity plans 22. if a bank is to survive a disaster, it must select the “ right ” strategy. development of alternative business continuity plan strategies should be based upon the outcome of the business impact analysis. cyber frauds and security 23. even though the actual value of losses accruing on account of cyber crime in india might not be substantial, nearly 39 per cent of these cases are related to banks and financial institutions excluding those of the government. the cyber criminals find banks to be a bis central bankers ’ speeches lucrative target for their ingenuity. instances of credit - card fraud have become common given the growing popularity of credit card transactions, internet banking and atms. as of now, the cyber criminals seem to be a few clicks ahead of cyber - crime sleuths. this is where the banks may need to take preventive action. fraud management 24. frauds directly impact the bottom line, hence it would be imperative that banks combat them effectively. if the business intelligence framework unifies various data sources, it would be possible to mine the data, detect suspicious transactions on different online channels and suggest an appropriate action. therefore, banks need to put in place

k c chakrabarty : beyond core banking solutions ( cbs ) – fast forward to banking 2. 0! address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the executive roundtable organised by the institute for development and research in banking technology ( idrbt ) in collaboration with union bank of india, mumbai, 18 february 2011. * * * assistance provided by smt nikhila koduri in preparation of this address is gratefully acknowledged. 1. shri m v nair, chairman & managing director, union bank of india, shri b sambamurthy, director, idrbt, shri s s mundra, executive director, union bank of india, shri m g sanghvi, executive director, bank of maharashtra, senior bankers, other distinguished guest, ladies and gentlemen. it is a pleasure to be in your midst today at this executive roundtable organised by idrbt in association with union bank of india on the theme “ beyond core banking ”. as you may be aware, this is a part of a series of roundtable organised by idrbt in collaboration with banks on the subject and i am happy to have been associated with some of them. idrbt has been doing a commendable job in enlarging the role banking technology and research and i do not recall of any other comparable institution in the world. under mr sambamurthy ’ s leadership, in keeping with its mandate, it is moving away from transactional areas into more strategic areas and research. 2. the next information revolution is well under way. peter drucker in the new information revolution has said and i quote “ the next information revolution is forcing us to redefine what business enterprise actually is – the creation of value and wealth. ” but it is not happening where information scientists, information executives, and the information industry in general are looking for. it is not a revolution in technology, machinery, techniques, software, or speed. it is a revolution in concepts - internet, web etc. it is age of the “ prosumer ” : producer and consumer of information. this prosumer is you – a web user who creates and uses content and information on the web. so far, for 50 years, the information revolution has centered on data – their collection, storage, transmission, analysis, and presentation. it has centered on the “ t ” in it. the next information revolution asks two pertinent questions : what