The business opportunity of Basel 2 (Basel Capital Accord and document storage)
The business opportunity of Basel 2 (Basel Capital Accord and document storage)
Hoffman M. Managing Information, October 2006, Vol. 13 No. 8, Start page: 10, No. of pages: 2
Purpose – to draw attention away from the problems associated with the Basel Capital Accord (Basel 2) risk management rules for financial institutions and point to the benefits that many companies have gained as a result of having to respond to its requirements through document storage. Design/methodology/approach – the business opportunities that lie dormant in the Basel 2 requirements are considered with particular reference to European Union (EU) financial institutions in general and UK banks in particular. Pays particular attention to the operational risk management and disaster recovery aspects of IT systems under Basel 2 and the vital role that digital document storage can play in accomplishing this. Findings – the major steps involved in building a disaster recovery solution that satisfies Basel 2 are outlined, including: the completion of a recovery time objective/recovery point objective (RTO/RPO) analysis; and establishing the means for ensuring the security of data while in transit between secure corporate facilities. Originality/value – demonstrates how the IT function of a company, once viewed as a cost accounting centre, is coming to be seen as a corporate asset in the financial services industry through the shift in focus to document storage.
Keywords: Banks, Business continuity, Communications technology,Digital storage, Disasters, Document management
