Study On Outsourcing Project Risk Management Of SYRCB Information Technology

According to the development of domestic financial market in China,information technology(IT)is more importantly part of his role in each field.Banking and modern IT tech are blending rapidly,especially,with the improvement of electronic integration of banking and IT,the Internet technology is getting more popular popularization.‘Prospering business based on science and technology,and creates value from it’ is a well-accepted concept.According to the international authoritative organization,which is Information Systems Audit and Control Association(ISACA),who published a guide on information systems auditing and controlling,the key of risk management of IT covers IT management,information security,management of business continuity,IT outsourcing project management and such.Among these topics,banking IT outsourcing projects are growing fast,which includes equipments introduction and maintenance,network management,database operation,IT system development and maintenance,data backup and recovery,IT related training and such.It is a priority to secure the IT outsourcing projects due to the nature of banking industry who lies in tech-intensive industry with highly developed information level.A safe and stable operation of its core business systems would help the people to secure their properties.The innovation and development of IT brings great benefits to banking industry,but with the limitation of technology accumulation,over-cost developing budget,long development period and so forth which caused,many small and middle-sized financial institutions are outsourcing their IT projects to figure those weaknesses from above.Some outsourcing services providers have taken over multi-banks outsourcing tasks,such as,self-service equipments,terminal equipments and POS systems services and have created various outsourcing models.And all of theseservices come from the rapid development of science and technology,particularly in the application of network communication upgrading,business systems integration and systems remote controlling.However,IT outsourcing is a double-edged sword,banks are taking huge external risks while enjoying the benefits brought by IT outsourcing.Recently,with innovations and developments in outsourcing for financial institutions’ IT applications,seeking for cooperation with outsourcing services providers has become to an important method to upgrading IT services level for all China’s commercial banks.Especially for the small and middle-sized banks,outsourcing IT services could help them with management and efficiency development,saving costs from IT research,development and maintenance;and fulfill the strategic upgrading of their IT services.Along with the forms of outsourcing,the contents of outsourcing have changed as well.With time flies,providers are not just taking care of the non-core businesses,but core businesses systems introduction,systems operation and maintenance and systems management have become their specializations as well.There is a particular value for Urban Commercial Banks,as a representative of the small and middle-sized banks,to seek for stable and qualified services without further investment on Labor and finance.In this research,with the example of risk management of outsourcing SYRCB’s information technology,combining the PMBOK theory,we will discuss the recognition,assessment and monitoring the risks of outsourcing projects,and then come up with a practical risk management model for small and middle-sized banks’ IT outsourcing.To hold the ground of without systematic and overall risks,we shall provide a valuable reference for stable and risk-free systems operations.This paper is mainly composed of four parts.Firstly,it introduces the research background and practical significance of carrying out the risk management of science and technology information technology project outsourcing.Secondly,it analyzes the current situation and analysis of the technology outsourcing project of SYRCB,and points out the existing problems.Then,the use of SYRCB’s science and technology information technology outsourcing project risk identification and analysis of the existence of the risk of identification,assessment,monitoring,and then effective management and reasonable control of outsourcing project risk.Finally,the paper expounds the implementation and guarantee of the risk control of the science and technology information technology outsourcing project of SYRCB,and interprets that the modern commercial banks should manage the risk of project outsourcing effectively and provide the guarantee for the implementation of the mechanism system and the organizational structure.Commercial banks to assess the level of risk management of scientific and technological information outsourcing project to enhance the level of risk management,make full use of outsourcing suppliers to save operating costs,optimize the allocation of resources to achieve maximum profit margins to provide an important reference.