Risk Management And Control Of Banking Information Technology Outsourcing

With the rapid development of information technology, IT outsourcing services market has been growing rapidly at more than 27 percent annually. The market scale is expected to reach more than 7.7 billion until 2011. It has become an inevitable trend for banking informatization development to use outsourcing. Currently, China's information technology level is low. Its products market is not standardized, and the associated laws and regulations are imperfect; simultaneously, banks are high debt, high-risk enterprise, it is very sensitive of the security of system, and the information security occupies a very important position. Because of the risk of China's banks IT outsourcing lack of adequate research and analysis, and no establishment of an effective risk prevention mechanism, hindering the development of China's banking IT outsourcing, and affected banks to reduce costs and improve efficiency of financial services. To analysis China's banking IT outsourcing risk and control, will play a positive role in promoting the bank's normal operations and management.The paper firstly analyzes both domestic and foreign banks' IT outsourcing research, put forward its concept, introduce its main contents, and set up its management model, in order to start discussion as a theoretical foil. Then focused on the China's banking IT outsourcing risk management theory, introduced a risk management model, and the three risk sources are service providers, banks and trading their own IT outsourcing process, the use of matrix of its risk of identification, and also the use of AHP for the combination of its risk cases to assess the system; China's banks carried out a more detailed analysis for the current status of IT outsourcing, pointing out that a culture of risk is missing, the organizational structure unreasonable and process control not strict. These are the main problems of IT outsourcing currently. Finally, According to the shortages, it is based on 9 principles of domestic banks of IT outsourcing, to point against its status quo of IT outsourcing. As to the question of the risk raises a five-point strategy, including the establishment of a comprehensive IT outsourcing risk management culture, its organization, a comprehensive plan for emergency treatment, a comprehensive outsourcing risk insurance mechanism, and a good IT personnel training mechanism. In addition, the papers also give special emphasis to strengthening the importance of the risk of IT outsourcing, and to propose a new organizational structure model of the banking IT outsourcing risk management for reference.